Why investors are worried about a giant AI bubble - and what happens if it bursts

This is Money Podcast

This is Money

Business News, News, Investing, Business

4.4 • 734 Ratings

🗓️ 10 October 2025

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

AI hype is still driving share prices higher but there are a growing number of voices warning of a stock market bubble that might soon burst.
The Bank of England added its name to the list of those raising concerns this week, as its Financial Policy Committee drew comparisons with the ‘dotcom’ boom 25 years ago that soon turned to bust.
The red flags include a number of high profile, huge money deals involving OpenAI, with Oracle, Nvidia and now AMD, along with a massive data centre infrastructure splurge and questions over the robustness of credit markets.
But why has AI gone from great investment hope to potential market super villain in a short space of time? What on earth is going on with US tech giants' 'I give you money, you buy my stuff' deals? And are there genuine parallels to be drawn with the dotcom boom, or the months before the credit crunch?
On this podcast, Georgie Frost, Angharad Carrick and Simon Lambert, look at why people are worried about an AI bubble popping and what investors can do to protect themselves.
Plus, could you claim some money back from the car finance compensation that the FCA announced this week?
Could we really scrap stamp duty - and would that be a good idea?
And why did some households manage to may nothing for their electricity last week?

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Hosts: Georgie Frost, Simon Lambert, Lee Boyce, Helen Crane

Producer: Georgie Frost

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Transcript

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0:00.0	Welcome to This Is Money podcast, sponsored by Charles Stanley Direct. I'm Georgie Frust and joining me and Simon
0:08.6	Lambert today is Ankarad Karak. And coming up, is this a week of history repeating itself?
0:14.4	AI hype is causing a fresh wave of fears over a repeat of the dot-com boom and bust is the gold price warning us of an impending crash.
0:23.2	Plus, has the regulator just fired the starting gun on PPI Mark 2?
0:28.0	Could you be in line for a £700 payday from the car finance scandal?
0:32.5	Also today we look at Conservative proposals to scrap stamp duty
0:35.3	and why some people paid nothing for their energy last weekend.
0:39.1	Don't forget you to stay out to date. With all the latest breaking money news, just go to this ismoney.com.
0:43.4	Or download the app.
0:45.9	But first, a message from our sponsors.
0:48.1	Ever feel like you've got a money question but not sure where to get it answered?
0:52.3	Well, now you do.
0:53.1	Charles Stanley directs financial coaching service
0:55.3	gives you one-to-one time with a real expert,
0:58.3	someone who will cut through the jargon
0:59.5	and help you feel confident about your finances.
1:02.4	And the best bit, you can start with a free 15-minute call.
1:05.5	Just head to Charles-Stanley.com.ukuk forward slash financial coaching.
1:10.6	Go on, your future self will thank you.
1:13.2	Remember, investment involves risk. Right, back to the show. Welcome, Simon. Welcome Ang.
1:18.2	Now, the Bank of England has joined the growing chorus, warning of the risk of an AI bubble
1:23.1	drawing comparisons to the dot-com mania 25 years ago. And we all know what happened there, don't we?
	...

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