--- title: "Blinking New Warning Sign Appears for AI Industry" description: "Fears over an AI bubble continue to grow as analysts warn that companies are massively overinvesting, according to a new survey." date: "2026-02-19" modified: "2026-02-19" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/artificial-intelligence/blinking-new-warning-sign-ai-industry" categories: - "Artificial Intelligence" - "Ethics" - "Google" --- # Blinking New Warning Sign Appears for AI Industry ![Fears over an AI bubble continue to grow as analysts warn that companies are massively overinvesting, according to a new survey.]() *Getty / Futurism* Investors have been [rattled]() by the enormous amount of money AI companies are committing to spend on infrastructure buildouts. Amazon alone saw its share price [drop precipitously]() earlier this month after announcing that it's planning to spend $200 billion this year on AI. Microsoft's shares also [plummeted]() after stoking fears that a return on AI investment may be even further off than expected. In total, big tech companies are predicted to [spend a record-breaking $650 billion]() on AI in 2026 alone, astronomical commitments that have Wall Street seriously on edge. Fears over an AI bubble continue to grow as analysts warn that companies are massively overinvesting. According to a [new Bank of America survey]() of 162 fund managers, a significant 35 percent said corporations are overinvesting in capital expenditures — funds used by a company to acquire, upgrade, and maintain physical assets — at a record proportion compared to previous survey results spanning the last 20 years. Only 20 percent said they approved of increasing capital expenditures. An AI bubble is a clear focus. A full 25 percent of survey respondents said they see the AI bubble as the largest risk — even more so than inflation and geopolitical conflict. And 30 percent said that AI expenditures were the most likely source of a credit crisis. In short, the survey results paint a dire picture of the current state of the market, blinking warning signs that big tech companies are spreading themselves too thin by continuing to hemorrhage tens of billions of dollars each quarter. Meanwhile, tech leaders continue to justify their enormous spending, with Google CEO Sundar Pichai [touting the present moment]() as "extraordinary" and "transformational," during the AI Summit in New Delhi, India, on Wednesday, comparing the AI boom to the industrial revolution, "but ten times faster and ten times larger." AI chipmaker Nvidia CEO Jensen Huang also [attempted to calm spooked]() investors this week, arguing AI investments are just the beginning. But analysts are far less convinced. "I would say clients are justified in being worried \[about an AI bubble\] because there’s a lot of uncertainty," Orbis Investments advisor Ben Preston [told the *Financial Times*](). **More on the AI bubble:** [*Investors Concerned AI Bubble Is Finally Popping*]() ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()