Bloomberg analyst: AI bubble will burst in 2027 or 2028

After reports that OpenAI would miss its annual revenue goal by $20 billion sent the Nasdaq down 1.25%, Panmure Liberum analyst Joachim Klement told Bloomberg TV the AI bubble will burst in 2027 or 2028. He argues the industry has over-invested in data centers and frontier models while the future lies in small, open-weight models running locally.

• OpenAI reportedly to miss annual revenue goal by $20 billion; Nasdaq fell 1.25%
• Klement: the AI bubble will burst in 2027 or 2028
• Excluding OpenAI and Anthropic, there is hardly any demand for AI compute
• Analyst says the future of AI is small open-weight models running locally