How the AI bubble will burst

Anthropic's revenue hit a $65 billion annualized run rate in mid-2026, up 7x year-over-year, making it the fastest-growing company in history by that measure. The author, Henry Blodget, draws direct parallels between the current AI boom and the dot-com and 2008 financial crises, arguing both require two conditions for a bust: genuine demand growth and financial leverage, both of which are present today. AI investment now accounts for roughly one-third of US GDP growth, meaning a crash would likely trigger a broad recession and bear market. Blodget's thesis is that the AI boom is simultaneously rational and a speculative bubble, as transformative technologies historically produce both massive long-term value and devastating near-term busts that wipe out early investors. He expects the same pattern to repeat: a supply-demand equilibrium point where growth slows, leverage reverses, and a major correction follows.