Investor and author Ruchir Sharma believes the decade-long era of “American exceptionalism” is peaking, warning that the U.S. economy has become dangerously reliant on a single technological narrative.

‘America Is Now One Big Bet On AI’

Speaking on a recent episode of the Bankless podcast, the Breakout Capital CIO argued that the United States has effectively become “one big bet on AI,” a concentration of risk that masks deep structural vulnerabilities.

Sharma offered a stark quantification of this dependency: approximately 40% of U.S. economic growth this year is derived directly from capital expenditure on building AI infrastructure.

Furthermore, he noted that nearly 80% of the U.S. stock market's recent gains are driven by AI-related plays. Without this “maniacal focus” and the resulting wealth effect, Sharma suggests the underlying economy might be closer to stall speed.

Tech Hype Is Masking US Debt And Deficits

Sharma explained that America’s AI enthusiasm is papering over structural cracks, including a fiscal deficit breaching 6% of GDP and a national debt exceeding 100% of GDP.

He ...