• Experts predict a potential AI bubble bursting in 2026.
• A return to economic reality may lead to a shakeout in the AI sector.
• The Pentagon may benefit from a collapse in AI spending.
• The US military could partner with struggling AI companies to acquire talent and technology.

The bursting of the AI bubble may create opportunities for the US military to acquire talent and technology at reduced costs, but also poses challenges in bridging the gap between the Pentagon and Silicon Valley. The DoD needs to demonstrate flexibility and credibility in its partnerships with AI companies to stay ahead of the competition.