Parts of it can be a bubble while other parts are not. The need for datacenters can be real while the valuation of model providers can be a fantasy.

The economics work out just fine. Their actual target business model is replace every knowledge worker. Their thought process is "look at all these people making 150k+, we can do their jobs for 10% of that, think how much money that would be if we had all of it"

Sure, the next step is complete regression to feudalism, but they aren't thinking that far ahead, they just want to take every job in existence that isn't physically turning a proverbial wrench.

well, according to finance bros, shovelling cash into a furnace to power a boiler to steam some eggs is considered a wild success. Economics is for normies.