Vendor spending on AI infrastructure has raced ahead of measurable enterprise value, fanning fears of a bubble. To cut through the hype, we introduce Forrester’s AI Bubble Model, which tracks the balance between supply and demand and the financial health of the companies building AI capacity. An AI bubble isn’t just a hyperscaler or investor issue. Whether the bubble ends in a gentle deflation or a hard correction, it will reshape pricing and contracts and potentially trigger startup failures, acquisitions, and product discontinuations. This report explains how to use our model to watch the bubble form, what a correction would do to your AI strategy and roadmap, and how to build a plan that survives it.