Trillions ‘Wasted’ on AI Boom Could Send Crypto Soaring, Analyst Warns

The global rush to build artificial intelligence infrastructure could end in massive overcapacity, a painful market correction and an eventual financial rescue that sends Bitcoin and other cryptocurrencies sharply higher, according to former BitMEX chief executive Arthur Hayes.

Hayes, co-founder and chief investment officer of crypto investment firm Maelstrom, argues that humanity is effectively “wasting multi-trillion dollars” on AI data centers as technology companies compete for increasingly powerful computing resources. Speaking in response to questions at the Gamma Prime Investing Conference in Singapore, this Bangkok Business News report notes that Hayes believes the unprecedented construction boom could ultimately make computing power extraordinarily cheap and abundant.

AI Spending Could Create a Historic Glut

The warning challenges the optimism surrounding one of the world’s largest technology investment cycles. Companies are pouring enormous sums into data centers, processors, power infrastructure and networking equipment as demand for generative AI continues expanding.

Hayes argues that history offers a warning. Major technological transformations have frequently attracted excessive capital, producing infrastructure far beyond immediate demand before markets eventually correct.

He expects a critical test around late 2027 or 2028, when substantial data center capacity now being developed is scheduled to become operational.

Infrastructure providers will then expect customers to honor commitments for computing capacity. Hayes highlighted OpenAI, Anthropic and SpaceX among major users driving demand, arguing that their economics will become increasingly important as those commitments mature.

There is, however, a bullish alternative. If AI becomes dramatically more useful during the coming year, rapidly expanding demand could help AI companies develop sustainable profitability and absorb much of the incoming computing capacity.

Why Hayes Thinks Bitcoin Could Win

Hayes believes an AI investment crash would not necessarily spell disaster for every asset class. Instead, he expects governments and central banks could ultimately respond to a severe downturn with additional liquidity, echoing interventions following previous financial crises.

That scenario underpins his bullish argument for Bitcoin and other digital assets. If authorities respond to financial stress by expanding liquidity, cryptocurrencies could become major beneficiaries as investors seek assets capable of absorbing newly created capital.

Hayes nevertheless does not favor simply shorting AI-related companies. Some suppliers are already highly profitable, including Nvidia and memory-chip manufacturers. For investors, he argues, the more difficult question is whether current valuations appropriately reflect their future earnings.

Cheap Computing Opens Another Crypto Bet

The expected abundance of computing capacity also supports Hayes’ latest venture, Flop, an AI-agent payments project targeted for launch in the first quarter of 2027.

Flop is intended to establish a spot market for computing resources, rewarding participants with tokens for supplying GPUs and performing AI inference. Hayes believes increasingly autonomous AI agents will eventually require a mechanism for converting digital currency directly into the computing resources they consume.

Whether the AI boom produces extraordinary productivity or a spectacular infrastructure glut remains unresolved. But Hayes’ argument highlights a growing investment risk: today’s seemingly insatiable demand for computing power must eventually generate sufficient economic returns to justify the enormous capital being committed. If it fails, the consequences could spread well beyond Silicon Valley—and potentially create the liquidity conditions that propel crypto markets into their next major cycle.