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Foreign Policy Live

Is the AI Economy a Bubble?

Foreign Policy Live

Foreign Policy

News Commentary, News, Politics

4.1 • 622 Ratings

🗓️ 30 October 2025

⏱️ 44 minutes

🧾️ Download transcript

Summary

Is the AI boom a bubble? What happens if it pops? Economist Jared Bernstein joined FP Live to sound the alarm on the growth and investment in the AI sector. Plus, Ravi’s One Thing on the first Trump-Xi meeting in six years.  James Palmer: Trump and Xi Step Back From the Brink—for Now Rishi Iyengar, Christina Lu, and Keith Johnson: What Trump and Xi Did—and Didn’t—Agree To Sahil Shah: Trump’s Vagueness Over Nuclear Testing Could Fuel an Arms Race New York Times: Jared Bernstein and Ryan Cummings: Warning: Our Stock Market Is Looking Like a Bubble Ravi Agrawal: Is the AI Economy a Bubble? Bhaskar Chakravorti: 10 New AI Challenges—and How to Meet Them Bhaskar Chakravorti: American AI Is High on Its Own Supply Brought to you by: quince.com/fplive Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:02.2

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0:02.9

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0:04.0

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0:05.6

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0:08.0

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0:12.0

If you need it, we print it at vistoprint.co.uk.

0:16.7

Hi, I'm Ravia Gruval, Foreign Policies Editor-in-Chief.

0:21.1

This is FP Live.

0:25.6

Is the AI boom a bubble?

0:28.9

All of a sudden, it is the question on everyone's mind.

0:33.2

CEOs are talking about it.

0:35.0

The markets are worried about it.

0:36.9

But nothing's stopping the growth

0:38.6

of the industry. Investors are still pouring in money, and it all comes amid real fears that growth

0:44.8

in the AI sector might be masking real weaknesses in the broader economy. In a moment, I will

0:51.7

speak with a top economist who's been raising the alarm.

0:55.9

But first, here's one thing on my mind. Actually, it's two things, but they're linked.

1:01.0

I'm recording this on the afternoon of Thursday, October 30th, and just last evening,

1:06.5

US President Donald Trump dropped a bombshell, pun intended, when he wrote on social media that

1:12.6

the United States would immediately restart nuclear weapons testing. This comes after 30 years of

1:19.9

American efforts to stop nuclear proliferation. At some level, this could be about trying to stay

...

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