Cory Doctorow Warns of Looming AI Industry Collapse

Renowned science fiction author and tech critic Cory Doctorow has issued a stark warning about what he sees as an impending collapse of the artificial intelligence industry. Known for his sharp insights into technology and economics, Doctorow argues that the AI boom has inflated into an unsustainable financial bubble that could soon burst.

According to Doctorow, a significant portion of the stock market’s current value—nearly one-third—is tied to just seven AI-focused companies. He believes these firms, despite their massive valuations, lack viable paths to long-term profitability. Instead, their growth has been driven largely by speculative investment, hype, and promises of revolutionary returns that may never materialize.

Doctorow compares the situation to previous economic bubbles fueled by unchecked optimism and investor frenzy, warning that when the illusion of profitability fades, the fallout could ripple across global markets. He describes the present moment as a classic case of “subprime intelligence,” where money flows faster than innovation can deliver tangible results.

His critique also highlights the broader risks of concentrating economic power in a few tech giants dominating AI development. As capital, energy, and talent are funneled into sustaining this momentum, Doctorow cautions that the industry may face a hard reckoning once investor patience runs out.

For him, the greatest danger isn’t rogue AI—it’s the unchecked financial enthusiasm surrounding it. When the bubble bursts, he predicts, the consequences could reshape the entire tech economy.