Spending on infrastructure has raced ahead of measurable returns, the analyst says, yet the financial strength of the companies funding the build-out is what keep Forrester from predicting an imminent crash. "Fears that an AI bubble is about to burst are premature," said Forrester emerging technology veep Brian Hopkins. "About nine-tenths of the money building today's AI computing infrastructure comes from large, healthy technology companies paying out of their own cash flow.
The risk is concentrated in a few places: a small number of builders under real financial strain, and circular financing deals with the AI labs." Conveniently, Forrester has developed an AI Bubble Model to help technology leaders monitor the risks and prepare.
