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Boom or bubble: How long can the AI investment craze last?

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Boom or bubble: How long can the AI investment craze last?


OpenAI, led by CEO Sam Altman, sits at the center of an AI investment bonanza.

The staggering investments in artificial intelligence keep coming: Last week, AI chip giant Nvidia announced it would invest $100 billion to help OpenAI, the frontrunner in generative AI, build data centers.

How are these enormous sums possible when the returns on investments, at least for now, pale in comparison?

Huge investments

AI-related spending is soaring worldwide, expected to reach approximately $1.5 trillion by 2025, according to US research firm Gartner, and over $2 trillion in 2026—nearly 2% of global GDP.

Even though tangible returns fall short of the investments going in, the AI revolution appears unstoppable.

“There’s no doubt among investors that AI is the major breakthrough technology”—on par with harnessing electricity, said Denis Barrier, head of investment fund Cathay Innovation.

Silicon Valley’s mindset “is more about seizing the opportunity” than worrying about any risks, he said.

Geopolitical tensions are helping drive the frenzy, primarily to build massive housing tens of thousands of expensive chips that require phenomenal electrical power and large-scale, energy-hungry cooling.

From 2013 to 2024, private AI investment reached $470 billion in the United States—nearly a quarter in the last year alone—followed by superpower rival China’s $119 billion, according to a Stanford University report.

Just a handful of giants are on the receiving end, with OpenAI first in line.

In March 2025, ChatGPT’s parent company raised approximately $40 billion, bringing its estimated valuation to around $300 billion, according to analysts.

‘Circular funding’

OpenAI is now the world’s most valuable company, surpassing SpaceX, worth $500 billion in a deal for employees to sell a limited number of shares.

The company led by CEO Sam Altman sits at the center of an AI investment bonanza: It oversees the Stargate project, which has secured $400 billion of the $500 billion planned by 2029 for Texas data centers spanning an area the size of Manhattan.

The White House-backed consortium includes Softbank, Oracle, Microsoft and Nvidia.

Nvidia, which completed over 50 venture capital deals in 2024 according to PitchBook data, is often chided for practicing “circular funding”—investing in startups that use the funds to buy its chips.

Some analysts criticize this as bubble-fueling behavior.

The OpenAI deal “will likely fuel those concerns,” said Stacy Rasgon, a Bernstein Research analyst.

In the first six months of 2025, OpenAI pulled in around $4.3 billion in revenue, specialist outlet The Information reported this week.

Therefore, unlike Meta or Google with substantial cash reserves, OpenAI and competitors like Anthropic or Mistral must be creative in their search for funds to bridge the gap.

For AI believers, an explosion in revenue is only a matter of time for a company whose ChatGPT assistant serves 700 million people—reaching nearly 9% of humanity less than three years after launch.

‘Up in smoke’

Nothing is certain, however.

Feeding AI’s computing appetite will cost up to $500 billion annually in global data center investments through 2030, requiring $2 trillion in annual revenues to make the expenses viable, according to consulting firm Bain & Company.

Even under optimistic assumptions, Bain estimates the AI industry faces an $800 billion deficit.

OpenAI itself plans to spend over $100 billion by 2029—meaning turning a profit is still a ways off.

On the energy front, AI’s global computing footprint could reach 200 gigawatts by 2030—the annual equivalent of Brazil’s electric consumption—half of that in the United States.

Despite the daunting figures, many analysts remain optimistic.

“Even with concerns about a possible ‘AI bubble’… we estimate the sector is in its 1996” moment during the , “absolutely not its 1999” before that , said Dan Ives, a Wedbush Securities analyst.

Long-term, “many dollars will go up in smoke, and there will be many losers, like during the internet bubble, but the internet remained,” said the Silicon Valley investor.

© 2025 AFP

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The Fight on Capitol Hill to Make It Easier to Fix Your Car

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The Fight on Capitol Hill to Make It Easier to Fix Your Car


Every time you get behind the wheel, your car is collecting data about you. Where you go, how fast you’re driving, how hard you brake, and even how much you weigh.

All of that data is not typically available to the vehicle owner. Instead, it’s gated behind secure restrictions that prevent anyone other than the manufacturer or authorized technicians from accessing the information. Automakers can use the same digital gates to lock owners out of making repairs or modifications, like replacing their own brake pads, without paying a premium for manufacturer service.

The Repair Act, a piece of pending legislation discussed in a subcommittee hearing at the US House of Representatives on Tuesday, would mandate that some of that collected data be shared with the vehicle owners, specifically the bits that would be useful for making repairs.

“Automakers are trying to use the kind of marketing advantage of exclusive access to this data to push you to go to the dealership where they know what triggered this information,” Nathan Proctor, senior director of the campaign for the right to repair at PIRG, says. “Repair would actually be quicker, cheaper, more convenient if this information was more widely distributed, but it’s not.”

Today, the US House’s Committee on Energy and Commerce held a hearing called (deep breath) “Examining Legislative Options to Strengthen Motor Vehicle Safety, Ensure Consumer Choice and Affordability, and Cement US Automotive Leadership.” The session covered potential legislation about improving road safety, regulating autonomous vehicles, and helping people protect their catalytic converters from theft.

The hearing took on a contentious tone when the discussion turned to the Repair Act. The House bill, introduced in early 2025 by Representatives Neal Dunn of Florida and Marie Gluesenkamp Perez of Washington, calls for automakers to give vehicle owners and third-party repair shops access to telemetry, or the ability to access all the data collected by modern vehicles. The act has been supported by organizations representing vehicle suppliers as well as auto care shops.

Bill Henvy, CEO of the Auto Care Association, who has long called for automakers to share vehicle owner’s data, testified in the hearing to say that the threat to owners’ data has been growing over the past decade.

“The need for the Repair Act is critical and real,” Hanvey said in the hearing, calling today’s vehicles essentially computers on wheels that produce data that manufacturers then gate off to block consumers from accessing. “Make no mistake about it, automakers unilaterally control the data, not the owner of the vehicle. It may be your car, but currently it is the manufacturer’s data to do with whatever they choose.”

The Repair act has been opposed by vehicle manufacturers and car dealerships, who cite concerns about their intellectual property being used by third parties. They say they have done enough to make their data and tools accessible and that if you need to get your car fixed it’s not too hard to find somebody authorized to peek inside its digital brain.

“Vehicle owners should be able to get their vehicles fixed anywhere they want,” said Hilary Cain, senior vice president of policy at the automaker industry group Alliance for Automotive Innovation, in testimony at the hearing. “The good news is that automakers already provide independent repairs with all the information, instruction, tools, and codes necessary to properly and safely fix a vehicle.”

Cain says ultimately automakers support a comprehensive federal right-to-repair law, albeit one that protects company intellectual property and “doesn’t force automakers to provide aftermarket parts manufacturers or auto parts retailers with data that isn’t necessary to diagnose or repair a vehicle.”



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Everything Is Content for the ‘Clicktatorship’

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Everything Is Content for the ‘Clicktatorship’


In President Donald Trump’s second term, everything is content. Videos of immigration raids are shared widely on X by the Department of Homeland Security (DHS), conspiracy theories dictate policy, and prominent right-wing podcasters and influencers have occupied high-level government roles. The second Trump administration is, to put it bluntly, very online.

Trump and his supporters have long trafficked in—and benefited from—misinformation and conspiracy theories, leveraging them to build visibility on social media platforms and set the tone of national conversations. During his first term, Trump was famous for announcing the administration’s positions and priorities via tweet. In the years since, social media platforms have become friendlier environments for conspiracy theories and those who promote them, helping them spread more widely. Trump’s playbook has adjusted accordingly.

Don Moynihan, a professor of public policy at the University of Michigan, says that social media, particularly right-wing social media ecosystems, are no longer just a way for Trump to control conversations and public perception. The administration, he says, is now actively making decisions and shaping policy based primarily on how they’ll be perceived online. Their priority is what right-wing communities care about—regardless of whether it’s real.

WIRED spoke to Moynihan, who argues that the US has entered a new level of enmeshment between the internet and politics, in what he calls a “clicktatorship.”

This conversation has been edited for length and clarity.

WIRED: To start us off, what is the “clicktatorship”?

Don Moynihan: A “clicktatorship” is a form of government that combines a social media worldview alongside authoritarian tendencies. This implies that people working in this form of government are not just using online platforms as a mode of communication, but that their beliefs, judgement, and decisionmaking reflect, are influenced by, and are directly responsive to the online world to an extreme degree. The “clicktatorship” views everything as content, including basic policy decisions and implementation practices.

The supply of a platform that encourages right-wing conspiracies and the demand of an administration for people who can traffic in those conspiracies is what’s giving us the current moments of “clicktatorship” that we’re experiencing.

The “clicktatorship” is generating these images to justify the occupation of American cities by military forces, or to justify cutting off resources to states that did not support the president, to do things that would have truly shocked us a decade ago.

Trump’s first presidency was characterized by a sort of showmanship. How is that different from what we’re seeing now?

The first Trump presidency might be understood as a “TV presidency,” where watching The Apprentice or Fox News gave you real insight into the milieu in which Trump was operating. The second Trump presidency is the “Truth Social or X presidency,” where it is very hard to interpret without the reference points of those online platforms. Some of the content and messaging that the president or other senior policymakers use is stuffed with inside references, messaging that doesn’t make a lot of sense unless you’re already in that online community.

Modes of discourse have also changed. We’re seeing very senior policymakers exhibit the patterns and habits that work online. Pam Bondi going to a Senate hearing with a list of zingers and printed out X posts as a means of responding to a traditional accountability process, reflects how this online mode of discourse is shaping how public officials view their real life roles.

There’s been a lot of research about the polarizing and harmful nature of social media. What does it mean that our political leaders are people who have not only been successful in manipulating social media, but have themselves been manipulated by it?



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Dozens of ICE Vehicles in Minnesota Lack ‘Necessary’ Lights and Sirens

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Dozens of ICE Vehicles in Minnesota Lack ‘Necessary’ Lights and Sirens


More than two dozen Immigration and Customs Enforcement vehicles on the ground in the Minneapolis-St. Paul area “currently lack the necessary emergency lights and sirens” required to be “compliant with law enforcement requirements,” according to a contract justification published in a federal register on Tuesday.

The document justifies ICE paying Whelen Engineering Company, a Connecticut-based firm specializing in “emergency warning and lighting technology,” $47,330.49 for 31 “ATLAS1” kits—seemingly a typo of ATLAS, the name of the product sold by Whelen—which the company’s website describes as an “Adaptable Travel Light and Siren Kit.” The document explains that the ATLAS Kits would “allow vehicles to be immediately operational and compliant with law enforcement requirements to support the current surge operation” out of Homeland Security Investigations (HSI)’s St. Paul office, which conducts operations in Minnesota, North Dakota, South Dakota.

“These vehicles were deployed prior to being permanently retrofitted and currently lack the necessary emergency lights and sirens required for operational use,” the document says.

The document also says that because of the “the time-sensitive nature of the mission” that HSI agents are conducting, having to wait for “permanent retrofitting” the agency vehicles with lights and sirens “would negatively impact operational readiness, law enforcement officer safety, and public safety.”

HSI’s most recent public handbook for agents conducting “emergency driving”—defined as driving during “official duties,” like low- or high-risk pursuits, that may require breaking speed limits or violating certain traffic laws—appears to have been published in 2012. It says that any HSI vehicles without lights and sirens “may not be used” in emergency driving, unless the officer “is conducting surveillance or is responding to an event that may adversely impact or threaten life, health, or property or requires an immediate law enforcement response.”

The handbook adds that if an HSI officer is emergency driving but their vehicle does not have lights or sirens, they “must terminate” their participation in a law enforcement operation, and an officer from another law enforcement agency that does have lights and sirens should take over. This HSI officer ”may continue to assist in a backup role, if necessary.”

The handbook does not specify the exact number or location of lights that have to be on an emergency vehicle, but it says that officers are responsible for reviewing any state statutes for emergency lights and sirens where they operate. Minnesota state law requires law enforcement and emergency drivers to “sound an audible signal by siren” and have at least one red light on the front of the vehicle, among other stipulations.

According to the listing for the ATLAS Kit on Whelen’s website, the kit includes several items that are also sold separately by the company, including lightheads and lightbars, as well as a siren amplifier and speaker. The kit comes in a portable case resembling a wheeled suitcase and a small device with a microphone and buttons for controlling the other items in the kit. Whelen describes ATLAS as being “designed for quick installation” for any vehicle, regardless of make or model” and ideal for “on-the-go law enforcement.”

The listing comes six days after ICE officer Jonathan Ross fatally shot 37-year-old Renee Nicole Good in her car in Minneapolis, sparking massive protests and an influx of right-wing influencers trying to capitalize on the chaos. After Department of Homeland Security secretary Kristi Noem announced that hundreds of additional ICE officers would join the 2,000 already in the Minneapolis area, the State of Minnesota and the cities of Minneapolis and St. Paul filed a federal lawsuit against DHS and its top officials, asking the judge to halt the federal immigration enforcement operation underway in the state.



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