The AI party keeps roaring: Why it won’t end anytime soon

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.

The AI party keeps roaring: Why it won’t end anytime soon Yes, there’s an artificial intelligence bubble, no denying that anymore — so the question becomes, “Will it burst, and when?” You’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. But 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.” This 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. What’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.” Even 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. Big-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/ . The 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/ . Here’s all the enterprise and emerging tech news this week from SiliconANGLE and beyond: Analysis, opinion and food for thought: No AI bubble burst yet Breaking Analysis: Forecasting the AI bubble: When scarcity turns to surplus https://siliconangle.com/2026/08/08/forecasting-ai-bubble-scarcity-turns-surplus/ 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/ 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/ 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/ Oh 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. AI and data: Meta doubles down on open-weights models New models and services 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/ 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/ 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/ 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/ 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/ 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/ 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/ Anthropic to start watermarking Claude-generated text, images https://siliconangle.com/2026/08/11/anthropic-start-watermarking-claude-generated-text-images/ IBM partners https://techcrunch.com/2026/08/13/ibm-partners-with-openai-to-bolster-enterprise-ai-push/ with OpenAI to bolster enterprise AI push 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/ 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/ 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/ OpenWALDO launches to build collaborative community for open-source AI https://siliconangle.com/2026/08/11/openwaldo-launches-build-collaborative-community-open-source-ai/ Apexon targets stalled AI pilots with three AgentRise additions https://siliconangle.com/2026/08/12/apexon-targets-stalled-ai-pilots-three-agentrise-additions/ Ahrefs launches AI agent workspace Letaido for marketers and agencies https://siliconangle.com/2026/08/12/ahrefs-launches-ai-agent-workspace-letaido-marketers-agencies/ 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/ Money matters Databricks raises $5B more after annualized revenue tops $7B https://siliconangle.com/2026/08/13/databricks-raises-another-5b-annualized-revenue-tops-7b/ Anthropic 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 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/ Dynatrace 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 Core 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 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/ 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/ 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/ 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/ Silicon 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 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/ AI-native market research automation startup Echovane raises $1M https://siliconangle.com/2026/08/10/ai-native-market-research-automation-startup-echovane-raises-1m/ Around the enterprise: The nonstop AI infra boom Money matters 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/ 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/ 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/ 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/ 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/ 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/ RF 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 Earnings: 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/ 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/ 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/ Nebius shares jump 34% on continued AI infrastructure demand https://siliconangle.com/2026/08/12/nebius-shares-jump-34-continued-ai-infrastructure-demand/ 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/ Foxconn 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 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/ 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/ 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/ Monday.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 New products and services Cyber beat: Trump to US cyber firms: Hack away Attack & response 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/ A month with Anthropic’s Mythos left Rubrik rethinking remediation https://siliconangle.com/2026/08/13/month-anthropics-mythos-left-rubrik-rethinking-remediation/ 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/ 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/ New services OpenAI expands Daybreak cybersecurity research program https://siliconangle.com/2026/08/10/openai-expands-daybreak-cybersecurity-research-program/ 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/ 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/ 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/ 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/ Money matters Corma launches with $60M in funding for defensive cybersecurity AI https://siliconangle.com/2026/08/10/corma-launches-60m-funding-defensive-cybersecurity-ai/ 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/ Elsewhere in tech Again acquires Geno to advance biomanufacturing at scale with AI design https://siliconangle.com/2026/08/12/acquires-geno-advance-biomanufacturing-scale-ai-design/ Comings and goings 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. Longtime 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. 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 . Azul named https://www.azul.com/newsroom/azul-names-kenny-johnston-chief-product-officer/ former Luciq and GitLab exec Kenny Johnston chief product officer. 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/ . Image: SiliconANGLE/Reve A message from John Furrier, co-founder of SiliconANGLE: Support 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. 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. Are you AWS customer? Support SiliconANGLE Financially by buying your AWS services from our Marketplace portal page and links. 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