Is the AI boom about to bust?

Is the AI boom about to bust?

Author: Chatham House August 7, 2026 Duration: 41:09

The $2.6 trillion spent on artificial intelligence, data centres and advanced chipmaking dwarfs the cost of previous infrastructure megaprojects. Yet AI has become a money pit for tech giants like Amazon, Google, Microsoft and Meta, and the tech is failing to hit its stratospheric targets.

Could an AI crash take overinvested economies down with it? In the longer term, whose approach will dominate? Will it be the US's private-led model with tech giants at the top? Or China's tactic of spreading low-cost AI throughout the Global South, with an eye on dominating the future?

Bronwen Maddox is joined by Alex Krasodomski, director of Chatham House's Digital Society Programme; James Kynge, a senior research fellow for China and the World with the Asia-Pacific Programme; and Creon Butler, director of the Global Economy and Finance Programme.

Produced by Podmasters, with thanks to Stephen Farrell and Sara Seth.

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Hosted by Chatham House director Bronwen Maddox, Independent Thinking brings the institute’s private deliberations into the public ear. This isn’t a rehearsed lecture series, but a direct channel into candid, high-level discussions typically held behind closed doors. Maddox guides conversations with a carefully selected mix of leading policymakers, frontline journalists, and Chatham House’s own deep bench of experts, focusing on the international political issues that are shaping headlines and rewriting global strategies. The tone is analytical yet accessible, privileging substance and nuance over soundbites. Each episode feels like a privileged seat at a crucial roundtable, where complex topics-from shifting alliances and economic sanctions to climate diplomacy and conflict-are unpacked with clarity and intellectual rigor. Listeners gain a clearer understanding of the forces driving world events, hearing diverse perspectives clash and converge in real time. For anyone looking to move beyond the superficial news cycle and engage with the substantive arguments defining our geopolitics, this podcast offers an essential and thoughtful resource. It’s where informed opinion meets the pressing questions of our moment, fostering a deeper kind of political literacy.
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