James van Geelen, a former tech investor, forecasts a potential market collapse driven by unsustainable AI infrastructure spending, citing a projected $400 billion annual investment in data centers by 2028. His scenario hinges on a feedback loop between AI adoption and capital allocation that could destabilize financial markets.
- Global AI compute spending expected to reach $400 billion annually by 2028
- Data center expansion accelerating at 35% year-over-year growth
- AI-related capital expenditures now account for 18% of total tech capex
- Van Geelen warns of a 'self-reinforcing feedback loop' between demand and investment
- Potential for asset bubbles in semiconductor and cloud infrastructure sectors
- Market correction risk if AI productivity gains fail to materialize within 24–36 months
James van Geelen, known for his contrarian views on technology trends, has outlined a dire forecast for global financial markets centered on artificial intelligence. In a recent public discussion, he argued that the current pace of AI infrastructure investment—especially in high-performance computing and data center expansion—exceeds economic fundamentals. He projected that global spending on AI-related compute capacity will reach $400 billion annually by 2028, up from approximately $120 billion in 2024.