I think what's lost on the general public who mainly thinks AI is ChatGPT, is that these companies are gunning for knowledge worker salaries. That by itself is ~$30T/year globally. Nothing else justifies the infra spend. Data center investment is a bet that they will be able to virtualize knowledge workers in the next 5 years.

Warehouse and factory labor is the next largest market for AI/robotics, at about $7T/year globally.

The bubble question is really about the target year. Will these companies start on a trajectory where AI begins eating these massive markets before investors lose faith?

To me it looks like one of these is true:

(1) this is indeed a bubble, and AI will turn into a useful tool integrated into everything but fall short of expectations. We'll see some significant multiple compression in the share prices of these core AI companies, but they'll remain good investments in the long term.

(2) this is a real transformation, the investment was worth it, and these companies will earn massive revenue while causing Depression-era levels of unemployment (24% if half of knowledge workers and factory/warehouse workers can get jobs).

Basically, the revenue required to justify the infra spend requires that they start eating existing industries, because that's certainly not going to come from ChatGPT/Claude subscriptions.