relevant article https://www.theringer.com/2025/11/04/tech/ai-bubble-burst-popping-explained-collapse-or-not-chatgpt

AI storytelling is an amalgam of several different narratives, including:

Inevitability: AI is the future; its eventual supremacy is both imminent and certain, and therefore anyone who doesn’t want to be left behind had better embrace the technology. See Jensen Huang, the CEO of Nvidia, insisting earlier this year that every job in the world will be impacted by AI “immediately.”

Functionality: AI performs miracles, and the AI products that have been released to the public wildly outperform the products they aim to replace. To believe this requires us to ignore the evidence obtained with our own eyes and ears, which tells us in many cases that the products barely work at all, but it’s the premise of every TV ad you watch out of the corner of your eye during a sports telecast.

Grandiosity: The world will never be the same; AI will change everything. This is the biggest and most important story AI companies tell, and as with the other two narratives, big tech seems determined to repeat it so insistently that we come to believe it without looking for any evidence that it’s true.

As far as I can make out, the scheme is essentially: Keep the ship floating for as long as possible, keep inhaling as much capital as possible, and maybe the tech will get somewhere that justifies the absurd valuations, or maybe we’ll worm our way so far into the government that it’ll have to bail us out, or maybe some other paradigm-altering development will fall from the sky. And the way to keep the ship floating is to keep peddling the vision and to seem more confident that the dream is inevitable the less it appears to be coming true.

speaking for myself, MS can thank AI for being the thing that made me finally completely ditch windows after using it 30+ years