Professor Warns AI Bubble Threatens Investors

Erik Gordon, an entrepreneurship professor at the University of Michigan, warned in a Wednesday email to Business Insider that rampant speculation and overinvestment have created a "planet-sized" AI bubble that will harm investors when it bursts. He cited Microsoft's post-earnings stock drop of more than 6% and a $49 billion data-center investment, noting investing cash rose 95% to over $57 billion in six months to December. The warning highlights elevated valuations across major AI-related stocks.