IS THERE AN AI BUBBLE? DEUTSCHE BANK SAYS YES — BUT MULTIPLE, AND STILL EARLY Deutsche Bank’s central 2026 question: Is AI in a bubble? The bank argues any bubble remains in its early stage, similar to dot-com after Greenspan’s 1996 warning, with years of gains still possible. Today features two distinct bubbles: 🔸 Cash-rich Big Tech funding AI capex from profits. 🔸 Unprofitable frontier firms (mostly private) burning cash. Current signals are green: range-bound earnings-driven valuations, cashflow-funded investment, scaling tech with falling costs. Red flags to watch: circular financing, debt-fueled capex, tech hurdles, politics, supply constraints. Conclusion: Reports of a single bursting bubble are exaggerated — for now.(*Walter Bloomberg)