{"slug": "the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon", "title": "The AI party keeps roaring: Why it won’t end anytime soon", "summary": "The AI bubble is unlikely to burst soon due to persistent shortages in high-bandwidth memory, advanced packaging, network fabric, power, and site readiness that will delay price discovery until at least 2028, according to Dave Vellante's Breaking Analysis. Recent earnings show mixed investor reactions, with CoreWeave, Nebius, and Supermicro outperforming, while Cisco, Cerebras, and Applied Materials saw stock declines despite solid results. Google's shift in AI leadership suggests a focus on cloud infrastructure over frontier models, as noted by SemiAnalysis and Tim O'Reilly.", "body_md": "### The AI party keeps roaring: Why it won’t end anytime soon\n\nYes, there’s an artificial intelligence bubble, no denying that anymore — so the question becomes, “Will it burst, and when?”\n\nYou’d be forgiven for thinking it could happen soon, given the continuing, seemingly never-ending funding of and [spending](https://www.bloomberg.com/news/articles/2026-07-31/big-tech-holds-2-trillion-of-spending-commitments-for-ai-boom?cmpid=081326_morningamer&utm_campaign=morningamer&utm_medium=email&utm_source=newsletter&utm_term=260813&utm_content=7677) by [AI model makers](https://www.wsj.com/tech/ai/anthropic-tries-to-shore-up-investor-confidence-ahead-of-blockbuster-ipo-0ff736ad?st=whk1xw), AI [processor](https://siliconangle.com/2026/08/10/intel-launch-15b-stock-sale-amid-ai-boom-advanced-packaging-demand/) [makers](https://siliconangle.com/2026/08/10/nvidia-taps-wall-street-half-trillion-dollars-fuel-global-ai-infrastructure-buildout/), chip equipment makers — the list goes on. And some of the bets, even or [especially by Nvidia](https://stratechery.com/2026/nvidias-risky-business/), do look risky.\n\nBut in his latest [Breaking Analysis](https://siliconangle.com/2026/08/08/forecasting-ai-bubble-scarcity-turns-surplus/), Dave Vellante contends that the bubble isn’t likely to burst soon. The reason, as he sums it up, comes down to continuing, cascading shortages of the various components of AI factories that are unlikely to ease before at least 2028 and possibly beyond: “The AI supply chain remains constrained by high-bandwidth memory, advanced packaging, network fabric, power and site readiness,” he writes. “These bottlenecks not only slow deployment, they also delay price discovery (the point at which buyers have more choice); and they postpone the moment when the market discovers whether it has overbuilt.”\n\nThis week’s tech earnings results continued to show that investors are mixed in their outlooks. Neoclouds [CoreWeave](https://siliconangle.com/2026/08/11/coreweave-coasts-solid-earnings-beat-sending-stock-higher-hours/) and [Nebius](https://siliconangle.com/2026/08/12/nebius-shares-jump-34-continued-ai-infrastructure-demand/) as well as server maker [Supermicro](https://siliconangle.com/2026/08/11/server-maker-supermicros-stock-soars-crushed-earnings-results-soaring-profits/) outperformed and got rewarded, but [Cisco Systems](https://siliconangle.com/2026/08/12/ai-infrastructure-spending-boosts-ciscos-earnings-revenue-stock-declines-hours/), AI chipmaker [Cerebras](https://siliconangle.com/2026/08/12/ai-chipmaker-cerebras-systems-stock-plunges-despite-posting-solid-earnings-guidance/) and chip equipment maker [Applied Materials](https://siliconangle.com/2026/08/13/applied-materials-delivers-earnings-revenue-estimates-wall-street-isnt-impressed/) outperformed and didn’t. Next week we get an earnings breather before the following week when Nvidia and others report.\n\nWhat’s Google’s real AI play? SemiAnalysis [contends](https://newsletter.semianalysis.com/p/gemini-is-cooked-but-gcp-is-cooking) that with the [change of job](https://siliconangle.com/2026/08/05/google-reveals-big-shake-ai-teams-jeff-dean-leaves-demis-hassabis-moves-upstairs/) by former DeepMind chief Demis Hassabis and the [departure](https://siliconangle.com/2026/08/05/google-reveals-big-shake-ai-teams-jeff-dean-leaves-demis-hassabis-moves-upstairs/) of AI pioneer Jeff Dean, Google has essentially given up on leadership in cutting-edge frontier AI models. Frankly that seems a [tad early to call](https://siliconangle.com/2026/08/13/google-launches-gemini-3-7-flash-coding-ai-agent-projects/), but it’s also clear that Google views the bigger opportunity in providing AI infrastructure through its cloud business, which is booming, [notes](https://asimovaddendum.substack.com/p/googles-westinghouse-bet) Tim O’Reilly: “It may be a mistake to assume that the AI race is about who builds the best intelligence. It may turn out to be about who builds the electrical grid. Maybe Google didn’t decide to stop trying to win so much as to decide that a different race was more worth winning.”\n\nEven as [Google](https://siliconangle.com/2026/08/13/google-launches-gemini-3-7-flash-coding-ai-agent-projects/), [SpaceXAI](https://siliconangle.com/2026/08/12/spacexai-releases-flagship-grok-4-6-model-advanced-reasoning-capabilities/), OpenAI, Anthropic and others keep releasing new proprietary models, Meta Platforms is doubling down on its bet on [open-weights models](https://siliconangle.com/2026/08/10/meta-releases-open-source-muse-glimmer-model-30b-parameters/). Of course, they could all do well, and the laggards in a particular technology often bet on openness, but it may be that Meta has carved out a distinct direction for itself, if it can remain consistent in that direction.\n\nBig-data giant Databricks keeps betting that staying private beats going public, and this week it got investors to keep buying in, with a [$5 billion raise](https://siliconangle.com/2026/08/13/databricks-raises-another-5b-annualized-revenue-tops-7b/).\n\nThe long-discussed SaaSpocalypse still hasn’t really happened despite the spread of AI, but one early sign that software-as-a-service firms could still get crunched is the latest report that [Workday may be in play](https://siliconangle.com/2026/08/13/workdays-stock-jumps-17-report-silver-lake-buyout-discussions/).\n\nHere’s all the enterprise and emerging tech news this week from SiliconANGLE and beyond:\n\n### Analysis, opinion and food for thought: No AI bubble burst yet\n\n[Breaking Analysis: Forecasting the AI bubble: When scarcity turns to surplus](https://siliconangle.com/2026/08/08/forecasting-ai-bubble-scarcity-turns-surplus/)\n\n*A roundup from Black Hat:* [Finding big money for AI and a smaller world for security at Black Hat USA 2026](https://siliconangle.com/2026/08/09/finding-big-money-ai-smaller-world-security-black-hat-usa-2026/)\n\n[Frontier AI raises the cybersecurity bar: Why prediction must become prevention](https://siliconangle.com/2026/08/11/frontier-ai-raises-cybersecurity-bar-prediction-must-become-prevention/)\n\n[Weak API controls are one of the biggest threats in the agentic AI era](https://siliconangle.com/2026/08/14/weak-api-controls-one-biggest-threats-agentic-ai-era/)\n\nOh lord, AI reporters are actually breaking big news ([per Wired](https://www.wired.com/story/ai-newsrooms-are-breaking-news-now-haha-im-in-danger/)) *Um, well, sort of.*\n\n### AI and data: Meta doubles down on open-weights models\n\n#### New models and services\n\n[SpaceXAI releases flagship Grok 4.6 model with advanced reasoning capabilities](https://siliconangle.com/2026/08/12/spacexai-releases-flagship-grok-4-6-model-advanced-reasoning-capabilities/)\n\n[Meta releases open-weights Muse Glimmer model with 30B parameters](https://siliconangle.com/2026/08/10/meta-releases-open-source-muse-glimmer-model-30b-parameters/)\n\n[Nvidia releases Nemotron 3.5 Lightning and NeMo Switchyard to give enterprise AI capability options](https://siliconangle.com/2026/08/11/nvidia-releases-nemotron-3-5-lightning-nemo-switchyard-give-enterprise-ai-capability-options/)\n\n[Google launches Gemini 3.7 Flash for coding, AI agent projects](https://siliconangle.com/2026/08/13/google-launches-gemini-3-7-flash-coding-ai-agent-projects/)\n\n[Google launches five new Pixel devices, array of Gemini Intelligence features](https://siliconangle.com/2026/08/12/google-launches-five-new-pixel-devices-array-gemini-intelligence-features/)\n\n[Google’s Gemini AI app passes 1 billion monthly active users](https://siliconangle.com/2026/08/11/googles-gemini-ai-app-passes-1-billion-monthly-active-users/)\n\n[Google debuts SL2T, an AI model that’s designed to understand sign language](https://siliconangle.com/2026/08/12/google-debuts-sl2t-ai-model-thats-designed-understand-sign-language/)\n\n[Anthropic to start watermarking Claude-generated text, images](https://siliconangle.com/2026/08/11/anthropic-start-watermarking-claude-generated-text-images/)\n\nIBM [partners](https://techcrunch.com/2026/08/13/ibm-partners-with-openai-to-bolster-enterprise-ai-push/) with OpenAI to bolster enterprise AI push\n\n[Writer launches major agentic AI improvements with Palmyra X6 flagship model](https://siliconangle.com/2026/08/13/writer-launches-major-agentic-ai-improvements-palmyra-x6-flagship-model/)\n\n[Exclusive: ZeroDrift applies small language model to prevent AI-generated compliance violations](https://siliconangle.com/2026/08/11/exclusive-zerodrift-applies-small-language-model-prevent-ai-generated-compliance-violations/)\n\n[Wix launches Symphony, a new standalone multi-agent system built for business operations](https://siliconangle.com/2026/08/11/wix-launches-symphony-new-standalone-multi-agent-system-built-business-operations/)\n\n[OpenWALDO launches to build collaborative community for open-source AI](https://siliconangle.com/2026/08/11/openwaldo-launches-build-collaborative-community-open-source-ai/)\n\n[Apexon targets stalled AI pilots with three AgentRise additions](https://siliconangle.com/2026/08/12/apexon-targets-stalled-ai-pilots-three-agentrise-additions/)\n\n[Ahrefs launches AI agent workspace Letaido for marketers and agencies](https://siliconangle.com/2026/08/12/ahrefs-launches-ai-agent-workspace-letaido-marketers-agencies/)\n\n[Regal ties its voice AI agents into Five9’s contact center platform](https://siliconangle.com/2026/08/13/regal-ties-voice-ai-agents-five9s-contact-center-platform/)\n\n#### Money matters\n\n[Databricks raises $5B more after annualized revenue tops $7B](https://siliconangle.com/2026/08/13/databricks-raises-another-5b-annualized-revenue-tops-7b/)\n\nAnthropic tries to shore up investor confidence ahead of blockbuster IPO ([per the Wall Street Journal](https://www.wsj.com/tech/ai/anthropic-tries-to-shore-up-investor-confidence-ahead-of-blockbuster-ipo-0ff736ad?st=whk1xw))\n\n[Personalized AI startup River AI raises $1.1B from consortium backed by Nvidia, AMD](https://siliconangle.com/2026/08/11/personalized-ai-startup-river-ai-raises-1-1b-consortium-backed-nvidia-amd/)\n\nDynatrace is expanding its portfolio of observability offerings with a deal to acquire Arize for $915M ([per CRN](https://www.crn.com/news/ai/2026/dynatrace-boosts-its-ai-observability-portfolio-with-arize-acquisition?itc=refresh))\n\nCore Automation, an AI continual learning model developer founded this year, is looking to [raise](https://www.sec.gov/Archives/edgar/data/2148145/000214814526000001/xslFormDX01/primary_doc.xml) up to $500M ([per Axios](https://www.axios.com/pro/enterprise-software-deals/2026/08/13/core-automation-raising-500-million))\n\n[Vibe coding startup Lovable doubles valuation to $13.3B with $400M raise](https://siliconangle.com/2026/08/12/vibe-coding-startup-lovable-doubles-valuation-13-3b-400m-raise/)\n\n[CodeRabbit bags $143M to help companies get a grip on the explosion of AI-generated code](https://siliconangle.com/2026/08/12/coderabbit-bags-143m-help-companies-get-grip-explosion-ai-generated-code/)\n\n[Skan AI raises $63M to give AI agents a map of enterprise work](https://siliconangle.com/2026/08/12/skan-ai-raises-63m-give-ai-agents-map-enterprise-work/)\n\n[Blacksmith raises $45M to aid AI code validation as agentic development grows](https://siliconangle.com/2026/08/12/blacksmith-raises-45m-aid-ai-code-validation-agentic-development-grows/)\n\nSilicon Data [raises](https://www.silicondata.com/news-room/silicon-data-raises-30-5-million-series-a) $30.5M Series A to build the independent AI benchmark layer\n\n[FriskAI launches with $3.6M to show enterprises what their AI agents are doing](https://siliconangle.com/2026/08/11/friskai-launches-3-6m-show-enterprises-ai-agents/)\n\n[AI-native market research automation startup Echovane raises $1M](https://siliconangle.com/2026/08/10/ai-native-market-research-automation-startup-echovane-raises-1m/)\n\n### Around the enterprise: The nonstop AI infra boom\n\n#### Money matters\n\n[Nvidia taps Wall Street for a half-trillion dollars to fuel global AI infrastructure buildout](https://siliconangle.com/2026/08/10/nvidia-taps-wall-street-half-trillion-dollars-fuel-global-ai-infrastructure-buildout/)\n\n[Intel launches $20B stock sale amid AI boom, advanced packaging demand](https://siliconangle.com/2026/08/10/intel-launch-15b-stock-sale-amid-ai-boom-advanced-packaging-demand/)\n\n[IBM inks $240M infrastructure deal with AI-optimized cloud operator Together AI](https://siliconangle.com/2026/08/11/ibm-inks-240m-infrastructure-deal-ai-optimized-cloud-operator-together-ai/)\n\n[Vantage explores $100B IPO as four data center operators line up listings](https://siliconangle.com/2026/08/13/vantage-explores-100b-ipo-four-data-center-operators-line-listings/)\n\n[Workday’s stock jumps 17% on report of Silver Lake buyout discussions](https://siliconangle.com/2026/08/13/workdays-stock-jumps-17-report-silver-lake-buyout-discussions/)\n\n[Insurance software provider Accelerant to be taken private for $4.4B](https://siliconangle.com/2026/08/13/insurance-software-provider-accelerant-taken-private-4-4b/)\n\nRF interconnect firm Point2 [completes](https://www.businesswire.com/news/home/20260806592673/en/Point2-Completes-$136M-Series-B-Funding-with-Arm-LB-Investment-and-Maverick-Silicon) $136M Series B funding with Arm, LB Investment and Maverick Silicon\n\n*Earnings:*\n\n[AI infrastructure spending boosts Cisco’s earnings and revenue, but its stock declines after-hours](https://siliconangle.com/2026/08/12/ai-infrastructure-spending-boosts-ciscos-earnings-revenue-stock-declines-hours/)\n\n[CoreWeave coasts to a solid earnings beat, sending its stock higher after-hours](https://siliconangle.com/2026/08/11/coreweave-coasts-solid-earnings-beat-sending-stock-higher-hours/)\n\n[Server maker Supermicro’s stock soars on crushed earnings results and soaring profits](https://siliconangle.com/2026/08/11/server-maker-supermicros-stock-soars-crushed-earnings-results-soaring-profits/)\n\n[Nebius shares jump 34% on continued AI infrastructure demand](https://siliconangle.com/2026/08/12/nebius-shares-jump-34-continued-ai-infrastructure-demand/)\n\n[AI chipmaker Cerebras Systems’ stock plunges, despite posting solid earnings and guidance](https://siliconangle.com/2026/08/12/ai-chipmaker-cerebras-systems-stock-plunges-despite-posting-solid-earnings-guidance/)\n\nFoxconn [ramping up](https://www.wsj.com/tech/foxconns-ai-hardware-sales-drive-profit-beat-58d9bac3?st=1xP7Gc&reflink=desktopwebshare_permalink) global AI server production to ride booming cloud investment\n\n[Applied Materials delivers earnings above estimates, but Wall Street isn’t impressed](https://siliconangle.com/2026/08/13/applied-materials-delivers-earnings-revenue-estimates-wall-street-isnt-impressed/)\n\n[Rackspace beats expectations but its losses pile up amid aggressive AI pivot](https://siliconangle.com/2026/08/10/rackspace-beats-expectations-losses-pile-amid-aggressive-ai-pivot/)\n\n[Rapid7 beats estimates, raises profit outlook and cuts 12% of staff](https://siliconangle.com/2026/08/10/rapid7-beats-estimates-raises-profit-outlook-cuts-12-staff/)\n\nMonday.com shares [slip](https://ts2.tech/en/monday-com-stock-falls-as-ai-arr-doubles-but-revenue-guidance-misses/#google_vignette) as AI ARR surges, revenue outlook disappoints\n\n#### New products and services\n\n### Cyber beat: Trump to US cyber firms: Hack away\n\n#### Attack & response\n\n[Trump memo lets vetted US firms run offensive cyber operations abroad](https://siliconangle.com/2026/08/13/trump-memo-lets-vetted-us-firms-run-offensive-cyber-operations-abroad/)\n\n[A month with Anthropic’s Mythos left Rubrik rethinking remediation](https://siliconangle.com/2026/08/13/month-anthropics-mythos-left-rubrik-rethinking-remediation/)\n\n[Criminals have moved AI out of testing and into daily use, Flashpoint finds](https://siliconangle.com/2026/08/13/criminals-moved-ai-testing-daily-use-flashpoint-finds/)\n\n[Cloudflare says 1 Tbps DDoS attacks grew sixfold in the second quarter](https://siliconangle.com/2026/08/11/cloudflare-says-1-tbps-ddos-attacks-grew-sixfold-second-quarter/)\n\n#### New services\n\n[OpenAI expands Daybreak cybersecurity research program](https://siliconangle.com/2026/08/10/openai-expands-daybreak-cybersecurity-research-program/)\n\n[Palo Alto Networks to run OpenAI cyber models inside customer networks](https://siliconangle.com/2026/08/12/palo-alto-networks-run-openai-cyber-models-inside-customer-networks/)\n\n[Blumira launches Hearth, an AI command center that spans rival security tools](https://siliconangle.com/2026/08/11/blumira-launches-hearth-ai-command-center-spans-rival-security-tools/)\n\n[DEF CON hackers launch Water Watch Center to defend small water utilities](https://siliconangle.com/2026/08/10/def-con-hackers-launch-water-watch-center-defend-small-water-utilities/)\n\n[Nozomi partners with Sophos to put operational technology data in IT consoles](https://siliconangle.com/2026/08/13/nozomi-partners-sophos-put-operational-technology-data-consoles/)\n\n#### Money matters\n\n[Corma launches with $60M in funding for defensive cybersecurity AI](https://siliconangle.com/2026/08/10/corma-launches-60m-funding-defensive-cybersecurity-ai/)\n\n[Mindgard raises $30M to handle security for AI models and applications](https://siliconangle.com/2026/08/13/mindgard-raises-30m-handle-security-ai-models-applications/)\n\n### Elsewhere in tech\n\n[Again acquires Geno to advance biomanufacturing at scale with AI design](https://siliconangle.com/2026/08/12/acquires-geno-advance-biomanufacturing-scale-ai-design/)\n\n### Comings and goings\n\n**David Floyer,** a longtime analyst who co-founded Wikibon, now **theCUBE Research,** died July 26 after a sudden illness. Colleague and Wikibon co-founder Dave Vellante provided a [remembrance](https://www.linkedin.com/pulse/remembering-david-floyer-david-vellante-tmgic/) of this all-around great human being.\n\nLongtime **OpenAI** executive **Brad Lightcap** [left](https://www.cnbc.com/2026/08/11/longtime-openai-executive-brad-lightcap-leaves-as-shakeup-at-ai-lab-continues.html) as shakeup at AI lab continues.\n\n**OpenAI** [appointed](https://openai.com/index/dali-rajic-chief-revenue-officer/) **Dali Rajic**, former president and chief operating officer of Wiz, which was recently acquired by Google, chief revenue officer, [replacing](https://www.cnbc.com/2026/08/13/openai-denise-dresser-executive-exits.html) departing **Denise Dresser**.\n\n**Azul** [named](https://www.azul.com/newsroom/azul-names-kenny-johnston-chief-product-officer/) former Luciq and GitLab exec **Kenny Johnston** chief product officer.\n\n**Hannah McClellan Richards** has left **Amazon** after more than 15 years to become chief operating officer of micromobility company **Lime** ([per GeekWire](https://www.geekwire.com/2026/tech-moves-amazon-vp-leaves-for-lime-microvision-and-slalom-names-execs-microsoft-departures/)).\n\n##### Image: SiliconANGLE/Reve\n\n# A message from John Furrier, co-founder of SiliconANGLE:\n\nSupport our mission to keep content open and free by engaging with theCUBE community. **Join theCUBE’s Alumni Trust Network**, where technology leaders connect, share intelligence and create opportunities.\n\n**15M+ viewers of theCUBE videos**, powering conversations across AI, cloud, cybersecurity and more** 11.4k+ theCUBE alumni**— Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.\n\n# Are you AWS customer? 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Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.", "url": "https://wpnews.pro/news/the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon", "canonical_source": "https://siliconangle.com/2026/08/14/ai-party-keeps-roaring-wont-end-anytime-soon/", "published_at": "2026-08-14 13:45:48+00:00", "updated_at": "2026-08-14 15:21:24.025818+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips", "ai-policy"], "entities": ["Dave Vellante", "Nvidia", "CoreWeave", "Nebius", "Supermicro", "Cisco Systems", "Cerebras", "Applied Materials"], "alternates": {"html": "https://wpnews.pro/news/the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon", "markdown": "https://wpnews.pro/news/the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon.md", "text": "https://wpnews.pro/news/the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon.txt", "jsonld": "https://wpnews.pro/news/the-ai-party-keeps-roaring-why-it-wont-end-anytime-soon.jsonld"}}