October 26, 2025

analysis  
Nvidia Drives $375 Billion AI Spending, Augusto Marietti on Bubble

The U.S. economy is experiencing a bifurcated growth pattern in late 2025, with artificial intelligence driving significant expansion and pushing stock markets to new heights, while many other sectors grapple with rising costs and cautious consumer spending. Global AI spending is projected to reach $375 billion this year, a major contributor to GDP growth. Companies like Nvidia are at the forefront of this AI-driven surge. However, this boom is not universally beneficial; small businesses, including florists and those in retail and travel, are finding themselves in survival mode due to economic pressures. In the tech infrastructure realm, Kong CEO Augusto Marietti suggests that while the current AI spending frenzy might be unsustainable and lead to a bubble, the underlying infrastructure being built will prove essential long-term. Beyond economic impacts, AI is also being integrated into various industries to enhance services. WETOUR is incorporating Expedia's AI Trip Planner to personalize travel bookings, and SOGAGEM is using AI to digitize Korea's Namdaemun jewelry market, improving global competitiveness and IP protection for small manufacturers. In healthcare, Iowa is exploring AI to address physician shortages by using it for administrative tasks and diagnostics, aiming to improve patient care. Meanwhile, a new health-tech app, MENU – ORDER AI, is set to launch, using AI to help users make healthier food choices. Telecommunications companies are also looking to AI and the creator economy for new revenue streams and customer engagement. However, concerns persist about the broader implications of AI reliance. Some experts worry it could reduce human involvement in knowledge creation, as seen with decreased activity on platforms like Stack Overflow, and that AI datasets might lack diverse global perspectives. The hype surrounding AI was recently highlighted when investor Matt Shumer's demo of AI-generated video games was met with criticism for its poor quality and incoherent visuals, questioning current AI capabilities in creative fields.

Key Takeaways

  • The U.S. economy is experiencing growth driven by AI investments, with global AI spending projected to hit $375 billion in 2025, while many other businesses struggle with rising costs.
  • Nvidia is a key company benefiting from the AI boom, contributing significantly to economic expansion.
  • Despite AI's economic boost, small businesses in sectors like retail and travel are facing survival challenges due to high costs and reduced consumer spending.
  • Kong CEO Augusto Marietti believes that while an AI spending bubble may form, the infrastructure being built for AI will have lasting importance.
  • WETOUR is integrating Expedia's AI Trip Planner to enhance travel booking personalization and efficiency.
  • SOGAGEM is leveraging AI to digitize Korea's Namdaemun jewelry market, aiming to boost K-jewelry's global competitiveness and protect intellectual property.
  • Iowa is considering AI tools to improve healthcare access and manage physician shortages by assisting with patient information and diagnostics.
  • A new app, MENU – ORDER AI, will launch to help users make healthier food choices by scanning restaurant menus.
  • Concerns exist that over-reliance on AI could decrease human involvement in creating new knowledge and potentially limit global information access.
  • Investor Matt Shumer's demonstration of AI-generated video games was criticized for its poor quality and incoherent visuals, raising questions about current AI capabilities in game development.

AI Boom Lifts Economy, But Small Businesses Struggle

The artificial intelligence boom is driving economic growth and pushing the stock market to new highs, largely due to companies like Nvidia. However, many smaller businesses face difficulties with rising costs from tariffs and lower consumer spending. For example, Norton's Florist in Birmingham, Alabama, is adjusting designs to keep prices stable. While AI spending contributed significantly to GDP growth in early 2025, many businesses are in survival mode due to economic pressures.

AI Fuels Economy While Other Sectors Face Hardship

In late 2025, the U.S. economy shows a split: AI investments boost tech and stock markets, contributing greatly to GDP. Meanwhile, businesses in retail, travel, and construction struggle with high costs and cautious consumers, leading many into 'survival mode.' Global AI spending is projected to reach $375 billion in 2025, significantly impacting U.S. GDP growth. Experts warn that without AI, economic expansion might be much slower, highlighting a potential dependency.

MENU ORDER AI App Launches October 28 for Healthier Food Choices

MENU – ORDER AI, a Boston-based health-tech company, is launching a new app on October 28, 2025, that uses artificial intelligence to help users find healthy meal options. The app scans restaurant menus in real-time, offering personalized suggestions for high-protein, GLP-1 friendly, low-carb, or low Weight Watchers points meals. It aims to simplify healthy eating decisions without restriction. The company is also developing advanced AI personalization and plans to educate young adults on making purposeful food choices.

WETOUR Integrates Expedia AI Trip Planner to Boost Travel Bookings

WETOUR announced it will integrate Expedia Group's new AI Trip Planner and B2B APIs into its platform. This collaboration aims to improve hotel booking efficiency and create more personalized travel experiences for users worldwide. The integration signifies a growing trend of partners adopting Expedia's AI tools. Investors will watch how this adoption affects Expedia's market position and revenue, especially in its business-to-business sector.

Kong CEO: AI Bubble May Burst, But Infrastructure Buildout is Key

Kong CEO Augusto 'Aghi' Marietti believes the current AI spending frenzy might lead to a bubble that could burst, possibly due to energy limitations. However, he argues that the massive infrastructure being built now for AI will be essential in the future, comparing it to the 19th-century U.S. railroad expansion. Marietti suggests that while some AI growth might slow temporarily, the deployed infrastructure will ultimately be needed and used, similar to how railroads are still utilized today.

SOGAGEM Uses AI to Digitize Namdaemun Jewelry Market

SOGAGEM Co., Ltd. is leading the digital transformation of the Namdaemun jewelry industry in Korea through its AI-powered online trade platform. The platform integrates artificial intelligence and intellectual property management to boost the global competitiveness of K-jewelry. It addresses challenges faced by small manufacturers, such as limited market access and IP protection, by creating a centralized online marketplace. AI analyzes market trends and customer preferences, while the IP system protects original designs.

Telecom Growth May Depend on Content Creators and AI

Telecommunications companies, traditionally focused on connectivity, have an opportunity to reinvent themselves by embracing the creator economy and artificial intelligence. Accenture's Astha Bhardwaj suggests telcos can become platforms for community and innovation by offering mobile plans tied to fan communities or gaming networks. Leveraging their user base, data, and trust, telcos can also act as AI aggregators, simplifying digital lives through integrated AI assistants and curated marketplaces. This shift could lead to new revenue streams and stronger customer loyalty.

Investor's AI Game Demo Criticized for Poor Quality

Tech investor Matt Shumer, CEO of HyperWrite, shared a video showcasing his vision for AI-generated video games, claiming they will be amazing. However, the AI-generated demo, presented as a shooter game, was widely criticized for its incoherent visuals and illogical gameplay. The video depicted bizarre scenarios, inconsistent environments, and nonsensical interactions, leading many to question the current capabilities and standards of AI in game development.

Iowa Should Use AI to Improve Healthcare Access

Iowa faces a shortage of physicians, making it crucial to explore AI tools to improve healthcare. Physician-in-training Collin Link suggests that AI can help manage patient information, draft medical notes, and assist in diagnostics, freeing up providers' time for patient interaction. While AI has limitations, Iowa should proactively fund pilot programs in hospitals and clinics to test these technologies. Implementing AI could lead to better health management and deeper connections between patients and healthcare providers in the state.

AI Reliance May Decrease New Knowledge Creation

While many believe AI will advance knowledge, there are concerns about potential losses. Reliance on AI search assistants and chatbots might reduce human involvement in creating new knowledge, as seen with the traffic drop on Stack Overflow. Furthermore, AI datasets may exclude knowledge from non-English languages, limiting global information access. The article also warns against irresponsible hype surrounding AI, citing an instance where AI was mistakenly believed to have solved mathematical problems. Ultimately, human decisions will shape the AI knowledge system, not superintelligence.

Sources

AI Economy Small Businesses Nvidia Tariffs Consumer Spending GDP Growth Stock Market AI Spending Tech Industry Retail Travel Construction MENU ORDER AI Health Tech Mobile App Healthy Eating Personalization WETOUR Expedia Travel Bookings APIs Hotel Booking Kong AI Bubble Infrastructure Energy Limitations SOGAGEM Namdaemun Jewelry Market Digital Transformation Online Marketplace Intellectual Property K-Jewelry Telecom Content Creators Creator Economy Accenture Community Platforms Gaming Networks AI Aggregators AI Assistants AI Game Development Healthcare Physician Shortage Medical Notes Diagnostics Patient Information Knowledge Creation AI Search Assistants Chatbots Stack Overflow Global Information Access