Jan van Eck says artificial intelligence remains a long-term megatrend, but notes that the speculative phase, known as the AI bubble, has already ended, with markets now actively punishing excess and mispriced risk.
In a new Fox Business interview, the VanEck chief says the shift happened quickly, even as public debate was still focused on whether a bubble existed at all.
He points to sharp declines in AI-linked compute platforms as evidence that markets have already moved into a disciplined phase.
“I think AI is a megatrend, but the bubble already popped. Just as we were all talking about the big bubble over the last two months, it’s popped. Why do I say that? Look at some of the compute platforms. Oracle, which was building out its compute, down 39% from the peak. CoreWeave, down 50%.”
He says those moves reflect how unforgiving markets have become when financing risks surface, particularly around large-scale AI spending.
“The market does not give companies a break. If they’re worried about financing, like they were talking about OpenAI… they’ll discipline them right away.”
Despite the pressure, Van Eck says the sell-off has reset valuations to levels he now finds attractive.
“However, now I think it’s a great entry point.”
To drive home his point, he says investors have already punished firms linked to the OpenAI ecosystem, where capital requirements far outstrip near-term revenue.
“The big weakness is the OpenAI ecosystem. Because Sam Altman wants to build a trillion dollars worth of compute, and he’s only got $10 billion worth of revenue or something like that. However, the market just disciplined all the companies that are leveraged into OpenAI. They’re now at attractive prices.”
He also points to Google’s actions over the last seven days, noting that the tech giant has helped create a bottom for the AI trade.
“And even over the last week, you’ve seen Google come in and finance some of the Bitcoin miners that are building out compute. So Google’s basically saying, ‘Listen, we need the electricity for the data centers. We’ve got your back. We’ve got the balance sheet.’ And so I think that puts a floor in this correction.”
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