The AI spending bubble could have an ominous effect on 401(k)s, given the massive concentration of tech stocks in the S&P500.

Here’s a new one. Not only is AI about to take your job and leave you on the street — it’s about to destroy your retirement account as well.

As the Washington Post observed in new reporting on the AI bubble, speculative investment into AI development is now the dominant force driving the US economy. By the numbers, the US GDP has grown at a rate of 1.6 percent so far this year, on pace to hit the 2.8 percent growth it achieved in 2024. That’s all well and good on paper, except for the troubling fact that two-thirds of that growth came from AI, per WaPo‘s analysis.