Doctorow Warns AI Bubble Could Burst, Urges Governments to Wait on Investment

1 articles · Updated · The Guardian · Jul 26

Cory Doctorow said the key question is not whether AI is in a bubble but when it will burst, warning companies that replaced staff with AI could struggle for years to rebuild lost skills and process knowledge.
Gulf sovereign wealth money, billionaire-backed datacentre spending and circular funding among chipmakers, AI firms and tech users are keeping the boom alive, he said, while delayed IPOs or funding trouble at companies like OpenAI and Anthropic could trigger a collapse.
One week after Anthony Albanese pledged stronger copyright rules to make AI companies pay for training on creative works, Doctorow said copyright alone "won't solve anyone's problems" and would do little for workers.
He argued labor-law protections over how workers use AI and control their output would help more, and said governments should avoid investing now, wait for a market crash and then build on open-source models and cheaper hardware.