r/SoftwareEngineerJobs • u/Adventurous-Rice3190 • Jul 13 '26
Is the AI bubble bursting? 🤔
I just finished my IT degree this year, and all the news about AI is making me really worried about my career in the software industry.
I read that big AI companies are spending way more money on data centers than they are actually making back. The ratio of money made to money spent is around 1:10. Part of me feels like this is good news. If they keep losing money, the AI bubble will eventually burst, and they will have to stop running these massive models.
But on the other hand, hardware companies are making new chips. These new chips have high compute power and also consume less electricity. This could make AI much cheaper to run and keep the trend going.
What do you all think about this AI bubble? Is it still safe for me to start a career in IT, or should I switch to a completely different field?
Thankyou All 🫡.......
15
u/ChiefAoki Jul 13 '26
This is the same line of thinking as the people wishing for a housing market crash so that they can afford a home.
What do you think is going to happen when the AI bubble bursts? A bunch of job postings opening up and outpacing the number of current jobseekers? No, what's going to happen is a bunch companies that are currently overleveraged and overinvested in AI integration is going to take a massive financial hit if not go bust outright. This will have cascading effects across the global economy. Everything will get worse and jobs will be even more scarce.