The business professor has previously warned of extreme tech valuations and predicted harsh fallout. Rampant speculation and massive overinvestment in AI have created a financial threat of cosmic proportions -- and the fallout will be catastrophic, Erik Gordon has warned.

Net equity issuance could turn positive this year, something that's preceded other market peaks. One research firm says it's spotted a new red flag in the AI trade that suggests the bubble is close to bursting.