Jack Selby, managing director at Thiel Capital, stated that the current artificial intelligence market boom may represent a speculative bubble. He warned that this bubble could potentially burst before the end of 2026.
The warning follows a period of decline for companies developing AI infrastructure. Shares of CoreWeave, Nebius, and IREN each dropped by more than 30% over approximately one month leading up to the statement.
Debt markets are showing signs of stress, with bonds tied to CoreWeave trading at yields between 15% and 16%. These figures suggest increased lender caution regarding the repayment capacity of AI-focused borrowers.
Concerns regarding AI-related debt have also been raised by the CEO of PIMCO, Elon Musk, and leadership at Apollo. Skeptics are questioning whether revenue growth exists outside of major cloud and tech hyperscalers.
Thiel-linked firms have reduced their exposure to Nvidia. Disclosures indicate that Peter Thiel’s hedge fund exited its Nvidia position, which was valued at approximately $100 million, during the third quarter of 2025.
