**[Arthur Hayes: The AI Bubble Lies in Debt and Loss-Making Company Valuations, Not AI Itself]** BlockBeats News, August 19 – BitMEX co-founder and Maelstrom Chief Investment Officer Arthur Hayes published an article addressing questions about why he continues to invest in AI/crypto projects despite believing there is a bubble in AI. Hayes responded that the current AI bubble primarily exists in "debt used to build data centers" and the stock valuations of loss-making hyperscalers and cutting-edge AI labs, rather than in AI technology and applications themselves. Hayes stated: "Price is what you pay, value is what you get." He emphasized that he is "100% confident in the agentic economy," a new economic model driven by AI agents. He further pointed out that the large-scale data centers built with borrowed funds may eventually lead to an oversupply of computing power. However, this surplus capacity could actually reinforce his investment thesis and drive the development of AI+crypto project Flop Labs, which he supports. Previously, Hayes has repeatedly discussed the impact of AI capital expenditures on market liquidity, arguing that since the commercialization of ChatGPT, significant funds have flowed into AI infrastructure construction, squeezing the space for new liquidity in the crypto market. [Original Link]