I doubt the bubble will burst because of logistical issues. There’s money to be made. More manufacturing and fabrication will be built. Scarcity pressures drive capitalist incentives and novel technologies will be built and investments will be made.

The bubble bursting will be from the total lack of value contributed to the economy by the a.i. projects. This will effect tech stocks, which dominate the stock market. However, if this process releases capital reserves into the economy it will have the effect of creating more consumer spending and there will be a counter balancing effect.

The real problem is ultimately that there aren’t enough jobs being created by all this activity to counteract all the job loss that’s happening. This can be papered over for a little while by having higher than average salaries being created as part of chasing this bubble, but that won’t last too long.

In the end, the bubble bursting will a financial event, not a social one. Many people will get financially hurt. Many institutions will get bailed out. These things are all merely the sharpening of contradictions. The bubble bursting will not cause a collapse directly. It’s when the contradictions become unsustainable that the collapse happens. It’s possible this financial event will push contradictions past that point, but it is impossible to tell.