Senior financial journalist: The artificial intelligence craze may be a precursor to a bubble, and a market crash will eventually come.

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Renowned financial journalist and author Andrew Ross Sorkin has issued a stern warning about the current AI-driven market, saying it bears similarities to historical bubbles and that a market crash is inevitable, though the exact timing and magnitude are unpredictable.

In a podcast interview on Sunday, Sorkin stated that he worries current market prices “may not be sustainable.” In his view, the market is facing two possibilities: either an “extraordinary boom” driven by AI stocks, or “everything is overvalued.” This assessment is based on his research for his new book "1929," which explores the great crash from nearly a century ago.

He believes the AI frenzy is “almost artificially” propping up the economy and raised a critical question: “This is either a gold rush, or a sugar rush, and it may take us years to know which one.” Sorkin bluntly stated that it is difficult to deny the market is now in a situation similar to the dot-com bubble of 2000 and the housing bubble of 2008, with the key issue being “when the bubble will burst.” In addition, relaxed regulation and rising debt are compounding market vulnerability.

This concern is not unique on Wall Street. JPMorgan Chase CEO Jamie Dimon recently stated that he is “much more worried than others” about an imminent correction in the U.S. stock market. Meanwhile, according to independent research firm MacroStrategy Partnership, the current AI bubble is 17 times the size of the dot-com bubble and 4 times that of the 2008 housing bubble.

Artificial Intelligence: Gold Rush or Sugar Rush?

Sorkin’s central argument is that the current economy and market are largely reliant on a massive wave of investment in the field of artificial intelligence. He told the media, “At present, hundreds of billions of dollars are being invested in AI;” this concentrated inflow of capital is supporting the overall economic performance.

However, this boom driven by a single theme also brings enormous uncertainty. Sorkin summarized the core dilemma for investors: the optimism sparked by AI—whether it’s due to a technological revolution capable of bringing long-term productivity gains and lasting returns (a gold rush), or simply a short-lived, unsustainable speculative frenzy (a sugar rush). He admits it may take several years to reach an answer, and until then, the market remains exposed to risk.

Sorkin compares the current market environment to the 2000 dot-com bubble and the 2008 housing bubble. In both cases, new technology or financial tools triggered irrational exuberance, which eventually ended in a severe market crash.

Relaxed Regulation and Increased Debt Fuel Speculation

Beyond the AI boom itself, Sorkin also points out several key factors worsening market vulnerability. He believes that the Trump administration’s relaxation of regulatory safeguards, the market’s increasing reliance on debt, and recent policy changes allowing private equity investment into 401(k) retirement accounts are all laying the groundwork for a potential crisis.

Sorkin emphasizes the danger is not that the market will “fall off a cliff tomorrow,” but the cumulative effect of multiple risk factors:

“There is speculation in today’s market, debt is ever-increasing, and all of this is happening as regulatory guardrails are being dismantled.”

While Sorkin repeatedly stresses he cannot predict the specific timing of a crash, he is convinced of its inevitability. He believes the essence of financial markets is confidence, and the collapse of confidence often happens suddenly and rapidly:

“The answer is we are going to have a crash; I just can’t tell you when, and I can’t tell you how deep. But I can assure you, unfortunately—I wish I wasn’t saying this—but we are going to experience a crash.”

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