Peter Thiel’s lieutenant warns AI bubble could burst before end of 2026

Thiel Capital's Jack Selby says the AI boom may be a speculative bubble, as infrastructure stocks slide and AI-linked debt yields climb One of Peter Thiel’s most senior money managers thinks the AI party may be running out of punch. Jack Selby, managing director at Thiel Capital, warned that the current artificial intelligence boom could be a speculative bubble that bursts before the end of 2026. That is a short fuse. Selby made the remarks at the SALT London conference on November 5, 2026, leaving the market less than two months to prove him wrong. The warning and the wreckage around it Selby’s comments did not arrive in a vacuum. They landed after a rough stretch for the companies building the physical backbone of the AI economy. Shares of CoreWeave, Nebius and IREN each fell by more than 30% in the run-up to his warning. Those declines played out over roughly a month. The stress is showing up in the bond market too. Some debt tied to CoreWeave traded at yields of around 15-16%. Bond yields work like a fear gauge. The more a lender worries about getting paid back, the higher the return they demand for taking the risk. Yields in the mid-teens are the kind of numbers usually reserv...