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The Cloud Bubble Lasted About 18 Months. How Long Will the AI Bubble Last?

  • The SaaS and Cloud industry continues to grow, with estimated total spend reaching $300 billion in 2025.
  • However, the average growth rate of public SaaS companies has dropped below 20%, indicating a slowdown compared to the high growth rates seen in previous years.
  • The COVID-19 pandemic accelerated spending on Cloud and SaaS solutions, creating a bubble that lasted for about 18 months.
  • It is anticipated that the AI bubble, driven by increased spending on AI technologies, may follow a similar trajectory and last for around 24-30 months.

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