The a16z Show · Monday, August 31, 2026
The AI boom, despite current growth, faces the historical pattern of market excitement leading to overvaluation and overbuilds, potentially forming a bubble. With compute already constrained, a surge in demand across the broader economy could exacerbate supply shortages.
“Every time you've had a real, profound new technology, you get a bubble because the markets get really excited and they get ahead of themselves, things get overvalued, that overvaluation leads to an overbuild.”
“Every major technology shift has produced over investment at some point.”
“But with compute already constrained and AI usage still concentrated among a relatively small number of people, what happens when that demand spreads across the broader economy?”