Name: The AI Bubble is Crashing…And The Government Is Bailing Out The Stock Market (Again)
Uploaded: 2026-03-07T18:00:44.000Z
Duration: 13 min 3 s
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The AI bubble is bursting and what's about to happen is way worse than you can possibly imagine.

The US government is preparing to bail out the entire stock market.

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And that is really weird because the U.S. government has a national debt of $38 trillion.

But on the other side, it is planning to bail out the companies that literally have trillions of dollars.

But the real question is, how do you know that the AI bubble is bursting?

Now first of all, the company that has been driving AI up until now is OpenAI.

And OpenAI last year has pledged to invest about $1.4 trillion.

It signed hundreds of billions of dollars worth of deals with companies such as Microsoft, Amazon and Nvidia and was planning to go public.

But it seems like nobody wants to invest in OpenAI.

But now they are massively running out of money and are trying to raise money from investors.

And that is the least amount of money they need just to survive 2026.

Last year they bragged that they have signed a 100 billion dollar investment from Nvidia.

Nvidia is only going to invest in OpenAI $30 billion.

Now the second sign that the AI bubble is bursting, the just take a look at the three largest companies that have been massively investing in AI.

The price of Oracle stock is down by 55%.

In September last year, just when they announced I bought the Oracle stock and the stock price instantly spiked.

But I knew that it's a bubble and I instantly sold all my stocks and I told the VIP members in the community to sell their stocks as well.

Since then the price of the stock has gone down by more than 55%.

Because Oracle has borrowed tens of billions of dollars to build the data centers that are going to power ChatGPT.

But OpenAI doesn't even have the money to pay Oracle in the first place.

Microsoft, which is another major investor in OpenAI, their stock price is down by 25%.

Now over the last two to three years people made a fortune investing in Palantir.

But it seems like it is over because the price of the Palantir stock is down by 35%.

And the third major sign that the AI bubble is bursting is Nvidia just released their revenue for the last quarter and they beat analysts expectations.

When you beat Wall Street's expectations, that means that you made more money than Wall street expected you to do so, which means that it instantly going to drive a lot of invest your stock.

The price of Nvidia didn't really rise like it's supposed to every single time when you beat analysts expectations.

And that means that everybody is waiting for Nvidia stock to crash and the entire AI bubble to burst.

Now here's the real question, why the price of Nvidia stock hasn't crashed yet.

If the AI bubble is bursting as you're claiming, then the first company that's supposed to suffer is Nvidia.

To understand that, you have to understand how bubbles are formed.

I A bubble is formed where investors are spending a lot of money creating artificial demand and then the price of that asset dramatically rises.

People have invested in this asset or purchased this asset because they thought that if they're going to put $1 today, tomorrow they will get back $10.

So the moment that price rises dramatically and then investors realize that they're not going to make as much money as they expected, so they will start massively selling an asset.

And so the price of that asset dramatically falls down.

When artificial intelligence became mainstream at the end of 2022, the big tech began spending hundreds of billions of dollars to develop AI and become the first company that is going to monopolize AI.

So investors have invested a lot of money into companies such as Amazon, OpenAI, Nvidia and so on and so forth.

That allowed these businesses to spend hundreds of billions of dollars.

Last year they have spent about $400 billion and this year they're expected to spend about $700 billion.

So in total so far they have spent already $800 billion and they're about to spend another $700 billion, which means that in total that will be about $1.5 trillion.

When you spend $1.5 trillion and your financial statement shows that you're not actually making any money from that investment and you're probably not going to make any profit out of that in the foreseeable future, that means that that investment is not going to pay off anytime soon.

But you have already spent that much money.

So investors invested in this business is hoping that this $1.5 trillion is going to make the big tech $3 trillion, $5 trillion.

But based on their balance sheet, they're not going to make that much money at Least in the foreseeable future.

So investors instantly start pulling out their investments, which is why stock prices are already crashing.

Nvidia is the only company that is not suffering out of this AI bubble because Nvidia is providing computer chips.

And most of these investments are being made by companies such as Amazon, Oracle, Microsoft, the companies that are data centers that are going to offer companies such as OpenAI to power ChatGPT.

But to build the data centers, Amazon, Microsoft and Oracle has to buy Nvidia computer chips.

So that $1.5 trillion is literally being spent to buy computer chips from Nvidia to power AI.

It is the companies that are building the data centers and the companies that offering AI services are the ones who are not making enough revenue to pay for these data centers.

So if you zoom out, the only company that is actually making a profit out of AI is Nvidia.

And because nobody can compete with Nvidia's computer chips, Nvidia is literally making a ton of profit out of every single chip.

In fact, if you literally just open their financial statements, they have like profit margins of 35 to 40%.

And making a 40% profit on a real good, not a service is insanely high.

If you're selling a service such as Adobe does, of course your profit margins are extremely high because for every single extra subscription for Photoshop or After Effects, you're not actually losing money.

But when you're selling a physical good such as an iPhone, then your profit margins cannot possibly be huge because there is a fixed cost that comes with every single iPhone.

Does that mean that all AI stocks are going to crash except Nvidia?

Well, not exactly, because the AI bubble is bursting and these companies will no longer have enough money to keep buying computer chips to build the data centers.

Which means that revenues of Nvidia are going to go down.

Which means that it is valuation is going to go down.

Which is exactly why Wall street did not actually keep buying Nvidia stocks even after they beat analysts expectations.

But the AI industry is not worried because Uncle Sam is preparing to bail out the entire AI industry.

Now according to Donald Trump's administration, the government is not going to bail out the AI.

These companies have enough money to bail themselves out.

But if you look at Donald Trump's actions, he made it clear that he is ready to bail out any company if the US government is going to take a stake in that business.

Last year, Donald Trump actually took A stake in intel, because the US government first offered a $10 billion investment into intel for Intel to bring manufacturing chips back to the United States of America.

And then Donald Trump look at that deal, and

told intel, listen, you're going to give that $10 billion back to the US government.

So the government said, we are going to take a 10% stake in Intel.

And Donald Trump has actually made it very, very clear that is open to such deals.

Which means that when the AI bubble is going to burst, Donald Trump is going to use the opportunity to bail out these businesses.

But in exchange, the US government is going to take a stake in OpenAI and other AI businesses.

Secondly, there is one thing that Donald Trump doesn't actually want, and that is losing to China.

If the AI bubble is going to burst, of course that is going to give an advantage to China, because many businesses in China that are developing AI have.

Have the backing of the Chinese government.

So in three to four years, China is going to overtake the United States, and

that should never happen under the watch of Donald Trump.

And if the AI bubble is also going to burst, the stock market is going to slow down.

And if there is one thing that Donald Trump keeps bragging about is the stock market is soaring under his presidency.

And I don't think he wants to see the stock market going down, especially when in 2026, there are midterm elections.

But that is really, really bad for the entire AI industry.

Anytime the government gets into business or takes a stake in a private business, that is a complete catastrophe for that business.

And that's because the government is always inefficient.