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Axios
Axios
US · 2 hrs ago
72◉ Centre
Revenge of the AI bubble
72Quality
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AI Analysis
Quality 72/100
Partisan intensity 35/100
ObjectivePartisan
◉ Centre ✓ Fair headline

The article traces the evolution of AI industry sentiment through three phases over three years: initial skepticism about capital investment without proven returns, subsequent enthusiasm driven by breakthrough tools like Claude Code, and a current reckoning where companies recognize both AI's potential and risks.

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Revenge of the AI bubble
The AI bubble debate has lurched through at least three frenzied phases in the span of three years: Suspicion: Historic sums of capital poured into AI before anyone proved it could reliably automate work. A violent market correction felt inevitable. Mania: Claude Code and autonomous agents made the early skepticism look outdated, fueling a corporate scramble to embed AI everywhere and maximize usage. Reckoning: Companies discovered that AI can be extraordinary when aimed precisely — and ruinous
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