In the rapidly evolving world of artificial intelligence, a stark warning from sci-fi author and tech critic Cory Doctorow is sending ripples through Silicon Valley. Doctorow, known for his incisive takes on technology’s societal impacts, predicts an imminent collapse of the AI sector, likening it to historical financial bubbles that left economies in tatters. Drawing from his recent interviews and writings, he argues that the hype surrounding AI is built on shaky foundations, with massive investments pouring into technologies that promise much but deliver little in sustainable value.

This pessimism stems from Doctorow’s observation that AI companies are burning through billions without clear paths to profitability. He points to the enormous energy demands and data requirements of large language models, which he says are unsustainable in the long term. In a piece published on his blog Pluralistic, Doctorow describes AI as “subprime intelligence,” a nod to the 2008 financial crisis where risky loans were bundled and sold as premium assets.

Unpacking the Bubble Dynamics

Echoing sentiments in a recent article from Futurism, Doctorow warns that the AI boom mirrors the dot-com bubble of the late 1990s, where overvaluation led to a spectacular crash. He highlights how venture capital has flooded startups like OpenAI and Anthropic, driven by fear of missing out rather than solid business models. “The AI industry is about to collapse,” Doctorow stated bluntly in the Futurism piece, emphasizing that the technology’s current applications—such as chatbots and image generators—are more novelty than necessity.

Industry insiders might recall similar hype cycles, but Doctorow delves deeper, critiquing the ethical shortcuts. He accuses AI firms of “shoveling asbestos into the walls of society,” a metaphor for embedding flawed, plagiarized systems into everyday tools. This view aligns with discussions on Reddit’s r/collapse forum, where users echoed his concerns about skyrocketing electrical costs and intellectual property theft fueling these models.

The Economic Ripple Effects

Beyond the tech sphere, Doctorow foresees broader economic fallout. If the bubble bursts, it could trigger job losses in AI-dependent sectors and erode investor confidence, much like the subprime mortgage meltdown. In his Medium essay, republished from Pluralistic, he argues that AI’s real value lies not in replacing human labor but in augmenting it—yet current implementations often do the opposite, automating low-value tasks while ignoring systemic inefficiencies.

Critics of Doctorow’s stance, including some AI optimists, counter that breakthroughs in areas like healthcare and climate modeling justify the investments. However, Doctorow dismisses this as “vibes-based” decision-making, a term borrowed from former Facebook executive Julie Zhuo in another Futurism analysis, where she critiqued the industry’s lack of foresight.

Lessons from Past Crashes

For industry veterans, Doctorow’s analysis serves as a cautionary tale. He references historical precedents, such as the railway mania of the 19th century, where overinvestment led to bankruptcy waves. In today’s context, he warns that AI’s data-hungry nature could exacerbate inequalities, with only a few giants like Google and Microsoft surviving the shakeout.

Yet, Doctorow isn’t entirely doom-and-gloom; he suggests that a collapse could pave the way for more ethical, human-centered tech development. As detailed in his Pluralistic posts, the key is regulating AI to prevent monopolistic abuses, ensuring that innovations benefit society rather than just shareholders.

Toward a Sustainable Path Forward

As the current date ticks into October 2025, with AI stocks fluctuating amid regulatory scrutiny, Doctorow’s predictions gain urgency. Reports from sources like the Financial Times, as noted in related Futurism coverage, reveal that even big businesses are grappling with AI’s integration challenges, often finding the tech overhyped and underdelivering.

Ultimately, Doctorow urges a reevaluation of AI’s role in the economy. By learning from this potential implosion, stakeholders could foster innovations that are resilient and equitable, avoiding the pitfalls of unchecked speculation that have plagued tech booms before.