Ex-Google executive warns Gulf AI investments may face a bubble burst

Gawdat, who previously led Alphabet’s Moonshot Factory, criticizes what he calls ‘shoddy accounting’ in AI investments, where companies like Nvidia, Microsoft, and OpenAI form interconnected financial webs. He warns that China’s cheaper, open-source AI models could disrupt Western tech giants if economic slowdowns force cost-cutting. Credit default swaps for tech firms like Alphabet and Nvidia surged in September, signaling market anxiety about AI spending sustainability. Gawdat expects a reckoning within the next two years, calling current valuations ‘exaggerated.’