bubble, bubble…
By way of background, investors appear to be significantly more bullish on AI than the general public, at least at the time of writing.
In fact, AI will be one of the biggest topics in financial markets by early October 2025, according to Michael Chamberrest, JPMorgan Chairman of Markets and Investment Strategy.
“AI stocks account for 75% of the S&P 500’s return and 80% of the S&P 500’s return. [company] Increased revenue and 90% increase in capital expenditures since ChatGPT launched”
With such alarming numbers, it is perhaps no surprise that some analysts have suggested that we are now in the realm of an “AI bubble.”
And in fact, even Open AI CEO Sam Altman has said that he believes investors may be “overexcited” about AI.
So, can the current valuation be justified?
[Note: nothing in this article or in our Global Digital Reports constitutes any form of investment advice]
Monetize your AI models
It’s not yet clear whether the bulk of AI revenue will ultimately come from subscription fees or an ad-supported model, but it seems reasonable to assume the industry may adopt both.
However, the geographic trends in AI sentiment examined above may be a cause for concern for both AI companies and investors.
For example, although Netflix operates in a completely different industry than OpenAI, the video streaming giant generated more than three-quarters (76%) of its revenue in Q2 2025 from users in North America and Europe, suggesting that the subscription-centric digital business remains highly dependent on developed economies for its economic success.
And that revenue is even more geographically skewed for digital companies that rely on advertising.
For example, Google’s parent company Alphabet derives almost half (48%) of its Q2 2025 global revenue from users in the United States, while more than two-thirds of Meta’s Q2 2025 revenue comes from North America and Europe.
Of course, adoption rates, use cases, and revenue models can all prove to be quite different between AI companies, but as a recent Reuters article highlights;
“Of the approximately 800 million people using ChatGPT, less than 2% pay for the service, and a growing number of them live in low-income countries such as India.”
Additionally, OpenAI itself recently issued the following statement:
“ChatGPT has also become a widely accessible global tool, growing rapidly, especially in low- and middle-income countries. By May 2025, ChatGPT adoption growth rate in low-income countries has more than quadrupled [times higher than] People in the highest income countries.”
Adding more perspective here, OpenAI recently launched special subscription packages for its flagship platform in India. The monthly subscription fee is approximately $4.60 USD.
And importantly, India-specific rates are more than just that. 4x cheaper Cheaper than the US “standard” ChatGPT Plus monthly subscription fee of $20.
