The Brief

Perhaps nobody embodies artificial intelligence mania quite like Jensen Huang, the chief executive of chip behemoth Nvidia, which has seen its value spike 300% in the last two years.

A frothy time for Huang, to be sure, which makes it all the more understandable why his first statement to investors on a recent earnings call was an attempt to deflate bubble fears.

"There's been a lot of talk about an AI bubble," he told shareholders. "From our vantage point, we see something very different."

Take in the AI bubble discourse and something becomes clear: Those who have the most to gain from artificial intelligence spending never slowing are proclaiming that critics who fret about an over-hyped investment frenzy have it all wrong.

"I don't think this is the beginning of a bust cycle," White House AI czar and venture capitalist David Sacks said on his podcast All-In. "I think that we're in a boom. We're in an investment super-cycle."

White House AI adviser David Sacks speaks onstage during The Bitcoin Conference at The Venetian Las Vegas in January.

(

Ian Maule

/

AFP via Getty Images

)

"The idea that we're going to have a demand problem five years from now, to me, seems quite absurd," said prominent Silicon Valley investor Ben Horowitz, adding: "if you look at demand and supply and what's going on and multiples against growth, it doesn't look like a bubble at all to me."

Appearing on CNBC, JPMorgan Chase executive Mary Callahan Erdoes said calling the amount of money rushing into AI right now a bubble is "a crazy concept," declaring that "we are on the precipice of a major, major revolution in a way that companies operate."

Yet a look under the hood of what's really going on right now in the AI industry is enough to deliver serious doubt, said Paul Kedrosky, a venture capitalist who is now a research fellow at MIT's Institute for the Digital Economy.

He said there is a startling amount of capital pouring into a "revolution" that remains mostly speculative.

"The technology is very useful, but the pace at which it is improving has more or less ground to a halt," Kedrosky said. "So the notion that the revolution continues with the same drum beat playing for the next five years is sadly mistaken."

The huge infusion of cash

The gusher of money is rushing in at a rate that is stunning to financial experts.

Take OpenAI, the ChatGPT maker that set off the AI race in late 2022. Its CEO Sam Altman has said the company is making $20 billion in revenue a year, and it plans to spend $1.4 trillion on data centers over the next eight years. That growth, of course, would rely on ever-ballooning sales from more and more people and businesses purchasing its AI services.

There is reason to be skeptical. A growing body of research indicates most firms are not seeing chatbots affect their bottom lines, and just 3% of people pay for AI, according to one analysis.

"These models are being hyped up, and we're investing more than we should," said Daron Acemoglu, an economist at MIT, who was awarded the 2024 Nobel Memorial Prize in Economic Sciences.

"I have no doubt that there will be AI technologies that will come out in the next ten years that will add real value and add to productivity, but much of what we hear from the industry now is exaggeration," he said.

Nonetheless, Amazon, Google, Meta and Microsoft are set to collectively sink around $400 billion on AI this year, mostly for funding data centers. Some of the companies are set to devote about 50% of their current cash flow to data center construction.

Or to put it another way: every iPhone user on earth would have to pay more than $250 to pay for that amount of spending. "That's not going to happen," Kedrosky said.

To avoid burning up too much of its cash on hand, big Silicon Valley companies, like Meta and Oracle, are tapping private equity and debt to finance the industry's data center building spree.

Paving the AI future with debt and other risky financing

One assessment, from Goldman Sachs analysts, found that hyperscaler companies — tech firms that have massive cloud and computing capacities — have taken on $121 billion in debt over the past year, a more than 300% uptick from the industry's typical debt load.

Analyst Gil Luria of the D.A. Davidson investment firm, who has been tracking Big Tech's data center boom, said some of the financial maneuvers Silicon Valley is making are structured to keep the appearance of debt off of balance sheets, using what's known as "special purpose vehicles."

An aerial view of a 33 megawatt data center with closed-loop cooling system in Vernon, California.

(

Mario Tama

/

Getty Images

)

The tech firm makes an investment in the data center, outside investors put up most of the cash, then the special purpose vehicle borrows money to buy the chips that are inside the data centers. The tech company gets the benefit of the increased computing capacity but it doesn't weigh down the company's balance sheet with debt.

For example, a special purpose vehicle was recently funded by Wall Street firm Blue Owl Capital and Meta for a data center in Louisiana.

The design of the deal is complicated but it goes something like this: Blue Owl took out a loan for $27 billion for the data center. That debt is backed up by Meta's payments for leasing the facility. Meta essentially has a mortgage on the data center. Meta owns 20% of the entity but gets all of the computing power the data center generates. Because of the financial structure of the deal, the $27 billion loan never shows up on Meta's balance sheet. If the AI bubble bursts and the data center goes dark, Meta will be on the hook to make a multi-billion-dollar payment to Blue Owl for the value of the data center.

Such financial arrangements, according to Luria, have something of a checkered past.

"The term special purpose vehicle came to consciousness about 25 years ago with a little company called Enron," said Luria, referring to the energy company that collapsed in 2001. "What's different now is companies are not hiding it. But having said that, it's not something we should be leaning on to build our future."

Enormous spending hinging on returns that could be a fantasy

Silicon Valley is taking on all this new debt with the assumption that massive new revenues from AI will cover the tab. But again, there is reason for doubt.

Morgan Stanley analysts estimate that Big Tech companies will dish out about $3 trillion on AI infrastructure through 2028, with their own cash flows covering only half of that.

"If the market for artificial intelligence were even to steady in its growth, pretty quickly we will have over-built capacity, and the debt will be worthless, and the financial institutions will lose money," Luria said.

Twenty-five years ago, the original dot-com bubble burst after, among other factors, debt financing built out fiber-optic cables for a future that had not yet arrived, said Luria, a lesson, it appears, tech companies are not worried about repeating.

"If we get to the point after spending hundreds of billions of dollars on data centers that we don't need a few years from now, then we're talking about another financial crisis," he said.

Circular deals raise even more concern

Another aspect of the over-heated AI landscape that is raising eyebrows is the circular nature of investments.

Take a recent $100 billion deal between Nvidia and OpenAI.

Nvidia will pump that amount into OpenAI to bankroll data centers. OpenAI will then fill those facilities with Nvidia's chips. Some analysts say this structure, where Nvidia is essentially subsidizing one of its biggest customers, artificially inflates actual demand for AI.

"The idea is I'm Nvidia and I want OpenAI to buy more of my chips, so I give them money to do it," Kedrosky said. "It's fairly common at a small scale, but it's unusual to see it in the tens and hundreds of billions of dollars," noting that the last time it was prevalent was during the dot-com bubble.

Open AI CEO Sam Altman speaks during Snowflake Summit 2025 at Moscone Center in June.

(

Justin Sullivan

/

Getty Images

)

Lesser-known companies are getting in on the action, too.

CoreWeave, once a crypto mining startup, pivoted to data center building to ride the AI boom. Major AI companies are turning to CoreWeave to train and run their AI models.

OpenAI has entered deals with CoreWeave worth tens of billions of dollars in which CoreWeave's chip capacity in data centers is rented out to OpenAI in exchange for stock in CoreWeave, and OpenAI, in turn, could use that stock to pay its CoreWeave renting fees.

Nvidia, meanwhile, which also owns part of CoreWeave, has a deal guaranteeing that Nvidia will gobble up any unused data center capacity through 2032.

"The danger," said the MIT economist Acemoglu,"is that these kinds of deals eventually reveal a house of cards."

Some high profile investors see bubble-popping on the horizon

Some influential investors are showing signs of bubble jitters.

Tech billionaire Peter Thiel sold off his entire stake in Nvidia worth around $100 million earlier this month. That came after SoftBank sold a nearly $6 billion stake in Nvidia.

And in recent weeks, AI bubble pessimists have rallied around Michael Burry, the hedge-fund investor who made hundreds of millions of dollars betting against the housing market in 2008. He was the subject of the 2015 film The Big Short. Since then, though, he's had a mixed reputation for market predictions, having warned about imminent collapses that never came to pass.

For what it's worth, Burry is now betting against Nvidia, accusing the AI industry of hiding behind a bunch of fancy accounting tricks. He's homed in the circular deals between companies.

"True end demand is ridiculously small. Almost all customers are funded by their dealers," Burry wrote on X. He later wrote: "OpenAI is the linchpin here. Can anyone name their auditor?"

As tech companies sink billions into data centers, some executives themselves are freely admitting there looks to be some over exuberance.

OpenAI CEO Sam Altman told reporters in August: "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes."

And Google chief executive Sundar Pichai told the BBC recently that "there are elements of irrationality" in the AI market right now.

Asked how Google would fare if the bubble burst, Pichai responded: "I think no company is going to be immune, including us."

Copyright 2025 NPR

Crews have now recovered the bodies of all nine backcountry skiers who were killed in an avalanche in Northern California earlier this week. It marks an end to what authorities on Saturday described as an agonizing five-day search and recovery operation complicated by intense winter storms northwest of Lake Tahoe.

"While we wish we could have saved them all, we are grateful that we can bring them home," said Nevada County Sheriff Shannan Moon during a Saturday news conference.

Until Saturday, authorities had not confirmed the death of a ninth victim, a skier who had been missing and presumed dead. Officials say their body was found near the eight other victims that have now been recovered. Authorities said avalanche hazards and weather conditions were too dangerous most of the week to search for the remaining victim or recover the bodies.

Four of the bodies were recovered on Friday, and the rest of the bodies were recovered on Saturday, all in the Castle Peak area where the avalanche – one of the deadliest in California history — struck. Six people from the group of 15 skiers survived Tuesday's disaster, the last day of a three-day backcountry ski trip. One guide and five travelers were among the survivors.

Helicopters with the California National Guard as well as the California Highway Patrol were used to hoist the remaining bodies from the mountain, officials said at the press conference.

On Friday, officials were able to use specialized techniques with the help of Pacific Gas & Electric to reduce the avalanche risk.

The ski trip was organized by Blackbird Mountain Guides, an outdoor tour company based in Truckee, Calif. Moon confirmed the identities of the victims. Three guides were killed: Andrew Alissandratos, 34, from Verdi, Nev.; Michael Henry, 30, from Soda Springs, Calif.; and Nicole Choo, 42, of South Lake Tahoe, Calif. The other victims, who had signed up for the group trip, are: Carrie Atkin, 46, of Soda Springs; Lizabeth Clabaugh, 52, of Boise, Idaho; Danielle Keatley, 44, of Soda Springs and Larkspur, Calif.; Kate Morse, 45, of Soda Springs and Tiburon, Calif.; Caroline Sekar, 45, of Soda Springs and San Francisco; and Katherine Vitt, 43, of Greenbrae, Calif.

The Sierra Avalanche Center classified the avalanche between a D2 and D3 on the avalanche danger scale.

"A D2 would take down a person. A D3 would take down a house, so it was right in between those. It was described by them as a football field length of a path of the avalanche," Sheriff Moon said on Saturday.

The area will be closed to visitors for several weeks, as the investigation continues.

Copyright 2026 NPR

A percussion instrument deeply-rooted in African music, the marimba shows up in everything from atonal avant-garde pieces to modern American pop songs. And yes, many people might know about its clear, playful tones through the iPhone ringtone of the same name.

But with its couch-sized layout of wooden bars and metal resonators, it's not always as accessible as say a guitar or more compact instrument.

Enter a man and a local non-profit on a mission to bring marimba to the masses.

From his home studio, Ariel Campos remembered one of the first times he really got intrigued by the marimba. He was listening to local radio.

“And I hear Tom Waits ‘Swordfishtrombone.’ That was like before Shazam and all that. And I was like, ‘what’s going on over here?!’” he said.

Campos teaches percussion at Mt. San Antonio College and he’s director of Southern California Marimba, a group dedicated to the promotion of marimba performance.

With its roots in Africa, Campos said American history is rich with the sounds of the marimba. That includes musicians like Clair Omar Musser, who toured with the instrument -- which can weigh hundreds of pounds -- back in the 1920s.

Musser might not ring a bell. But the marimba master was a big deal in his day, even organizing a 100-piece marimba orchestra for the Chicago World’s Fair in 1933.

In his studio filled with an array of other percussion instruments, Campos explained that the marimba is usually played with two, four or even six mallets. When I met with him earlier this month, he demonstrated the dexterity needed to pull that off on his own antique marimba: A hulking Deagan marimba he estimates was built in the 1920s.

Campos said he’s also interested in the rich marimba heritage of countries like Mexico and Guatemala, where the instrument is still very much alive.

In Guatemala, where the marimba is the national instrument, it’s not uncommon for three or more people to play the same instrument at the same time, Campos said.

“There’s a great band right now from Mexico. They’re called Son Rompe Pera,” Campos said. “Their slogan is like: cumbia is the new punk. And so they play cumbia punk music on the marimba.”

A working musician who’s played marimba with acts like Brooks and Dunn, Campos has a wide repertoire: from classical to pop songs like the Los Bukis classic, “Tu Cárcel.”

For over a year now, Campos and his colleagues at Southern California Marimbas have brought an eclectic array of live marimba music to audiences in L.A. He calls them ‘marimba salons’ and they even include some of his weirder, more avant-garde creations. For some of his atonal pieces, Campos uses his fingers, bare hands and even a bass bow to bring out the more subtle sounds of the instrument.

Campos said his goal with the marimba salons is to bring the marimba out of the academic setting and into neighborhoods where people can experience it up close.

“It’s the idea of bringing people together, especially now, in these times. We need to build a sense of community. And that can look however we want it to look,” Campos said.

“And I think using the marimba to do that is a great opportunity.”

The next SoCal Marimba salon is coming up on Sunday March 22 at 8pm at Sunspace in Shadow Hills.

Marimba Salon

Sunspace
9683 Sunland Blvd.

Shadow Hills, CA 91040

Sunday, March 22
8 - 9 p.m.

Mt. San Antonio College will also host a marimba festival and competition July 25-26. Check out Southern California Marimba’s website for more info as it becomes available.

In early 2020, Frank Ledezma and Jennyfer Gramajo moved into a new storefront for their event photography business on First Street in East L.A.

But like the story of so many small businesses during the pandemic shutdown, the husband-and-wife team soon found themselves needing to pivot.

 "We would do events for quinceañeras, baptisms, weddings," Gramajo said. "At that moment, all of our events were canceled."

Unlike the roller-coaster experiences that have defined so many mom-and-pops, though, their East L.A. Film Shop has been a story of unexpected success.

Inside East L.A. Film Shop.

(

Fiona Ng

/

LAist

)

Selling rolls

Gramajo and Ledezma went from shooting photos to selling film to photographers, during a crazy-making time when there probably wasn't a better way to kill time than to take your camera out and capture a suspended world.

"You couldn't find film. People were still shooting," Ledezma said. "People still wanted to go out and shoot."

The couple was already selling some photo supplies before the pandemic, but not much. After the lockdown, Gramajo said Ledezma asked her if he should pour their savings to go all in on the switch, based off a friend's suggestion, on a wing and a prayer.

"I'm like, 'Well, I think you should just buy a couple of rolls and see how it goes,'" Gramajo remembered.

Frank Ledezma and Jennyfer Gramajo, the husband and wife owners of East L.A. Film Shop.

(

Fiona Ng

/

LAist

)

East L.A. Film Shop

(

Fiona Ng

/

LAist

)

With that, East L.A. Film Shop was born.

The couple started advertising their goods on social media. As word of mouth spread, customers sought them out.

" We started meeting people like at the Jack in the Box parking lot. We would go deliver film like if it was Uber Eats," Gramajo said.

" They were like, 'Oh, go with Frank. They have it in stock. They always have it in stock,'" Ledezma said.

After reopening, the demand for film rolls stayed strong, so much so that East L.A. Film Shop expanded their offering to include film development and other services. Their clientele, Gramajo said, has always run the gamut, from seasoned pros to novices, including an elderly man who needed help loading a new roll into his old camera, or a woman who brought her kid to get a crash course on all the different knobs and buttons.

"Film Foos" hats for sale at East L.A. Film Shop.

(

Fiona Ng

/

LAist

)

Since last year, East L.A. Film Shop has relocated to the storefront next door, a much bigger space to accommodate more equipment and a growing staff.

The extra room also allows the couple to create a community space for music, photo exhibits and more.

On Sunday, East L.A. Film shop is hosting its monthly "Barrios Sunday," where small local vendors are invited to set up shop for the day to sell their goods and get the word out about their business.

The couple is also asking photographers — analog and digital — to post their photos on the walls of the shop. The works will be displayed for a week.

As for Ledezma and Gramajo, they still go out and shoot. It's a kind of second nature — especially for Ledezma, who grew up helping his father, an event photographer himself, on his shoots.

"When I open a fresh roll, like the smell, it takes you back [to]  when I was a kid and my dad's like, 'Oh, gimme this roll,’" he said. "You still get that smell of fresh film. You know, it just takes you back."

Barrio Sunday

East L.A. Film Shop
3541 1st St., Los Angeles
Feb 22. Sun., 10 a.m. - 3 p.m.