Thomas Unise
In a year that had it all, from AI reshaping the global economy to Elon Musk’s Department of Government Efficiency taking over federal agencies, WIRED’s Uncanny Valley podcast hosts Zoë Schiffer and Brian Barrett reflect on the key tech developments of 2025 and what they signal for 2026.
The AI Data Center Boom
The explosive growth of AI data centers has become a central economic story, with Meta, Google, and Microsoft dramatically increasing infrastructure spending. These facilities are simultaneously propping up the economy and raising concerns about environmental impact and resource consumption.
Industry experts, including Sam Altman and investor Michael Burry, have warned about a potential AI bubble forming. With 60% of data center costs going to GPUs that need replacement every three years, and many deals structured through special purpose vehicles to keep expenses off balance sheets, the financial sustainability remains questionable.
Global AI Competition
January 2025 marked a significant moment when Chinese AI lab DeepSeek released its R1 open model, causing Nvidia to lose nearly $600 billion in market cap in a single day—the largest one-day loss for a single stock in history.
China’s commitment to open-weight AI models (where anyone can download, modify, and improve the model) has given them a strategic advantage. Meanwhile, US companies like Meta have shifted toward proprietary models, potentially limiting innovation and forcing redundant research efforts.
AI Relationships and Societal Impact
The rise of AI chatbot companions has sparked both concern and acceptance. While some relationships have allegedly contributed to harmful outcomes, others appear to fill genuine emotional voids for users. The hosts suggest that AI relationships might be symptoms of broader societal disconnection rather than simply technological problems.
The discussion highlights the need for both technical safeguards and broader social solutions to address the root causes of AI dependency.
Looking Forward to 2026
The hosts predict that the AI bubble may continue expanding through 2026, with a potential reckoning coming in 2027. They anticipate growing political resistance to data centers as communities begin experiencing higher energy costs and realize that job creation benefits are often temporary and limited.
Additionally, they expect an
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