Odaily Planet Daily reports that Arthur Hayes posted on X, stating that his article "Situationship" explores how the AI bubble will burst and why monetary easing will drive BTC back into a bull market. He argues that the key variable in determining whether AI is a bubble lies in the internal framework—investors must distinguish whether AI capital expenditures represent technology or real estate. The current market treats trillions of dollars in construction as technology, assigning high growth valuation multiples. However, Hayes believes AI capital spending is essentially another form of real estate investment, where computational power within data centers will give rise to silicon-based life forms and transform human civilization more profoundly than railways ever did.
Arthur Hayes argues that the distinction between real estate and computing power is crucial, as hedge funds, banks, private credit funds, and ultimately governments are treating the financing of data center and power plant construction similarly to lending to Apple, rather than to Lehman Brothers. He believes the AI bubble will burst when financial intermediaries, with the tacit support of the U.S. and Chinese governments, overbuild data centers and related infrastructure. Therefore, the AI bubble is akin to the 2008 credit story, not the 2000 earnings story.