The Benefits of Bubbles

Stratechery

Ben Thompson

Article

11 Pages

Ben Thompson argues that speculative bubbles around new technologies can still create lasting real world benefits. He contrasts destructive mean reversion bubbles with productive inflection bubbles that finance infrastructure and experimentation. He then applies this lens to the current AI boom, where huge spending on chips, data centers and power may outlast any eventual crash.

Date published: November 5, 2025

Key Takeaways

Bubbles as installation: Bubbles fund infrastructure and capacity that later supports broad, durable economic deployment of technology.
Inflection bubble lens: Inflection bubbles back transformative shifts, while mean reversion bubbles misallocate capital and leave lasting damage.
AI boom example: Current AI boom channels speculative capital into chips, data centers and power that persist after prices fall.
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