Is AI a bubble about to burst? Perhaps, but many prefer not to say a word.
On Wall Street, the AI hype is being experienced with both unbridled optimism and extreme anxiety.
A few weeks ago, Sam Altman, the CEO of OpenAI, bluntly warned about investor overexcitement surrounding artificial intelligence (AI). His words join an increasingly vocal chorus of voices warning of the formation of a bubble in the AI industry (which would be similar in many ways to the one that burst back in 2000 in the thriving Internet of Things market).
According to the Massachusetts Institute of Technology (MIT), 95% of projects directly related to AI are unprofitable. However, despite signs pointing to the formation of a bubble in the AI sector, Wall Street paradoxically refuses to talk about it (or at least to use that term to describe the phenomenon).
However, this phenomenon was recently addressed by someone who is probably the least interested in giving voice to the bubble that is supposedly forming in the AI industry today. That person is Sam Altman, CEO of OpenAI, who last month spoke openly about investor over-excitement about AI.
Altman’s remarks also coincided with the disappointing debut of GPT-5, a failure that reportedly contributed to eroding some investors’ (blind) confidence in AI.
Some experts have been warning about a possible bursting of the AI bubble for some time now. Gary Marcus, a researcher at New York University, first warned about this phenomenon in 2023, and the investment fund Apollo Global Management has been sounding the alarm since last July.
Many experts deliberately avoid speaking openly about the AI bubble.
There is also data that corroborates that there is indeed reason to fear a potential bubble in the AI market. MIT research has concluded that 95% of generative AI projects developed within companies fail miserably to generate profits. And Apollo Global Management claims that, according to the figures at its disposal, technology companies are more overvalued today than they were during the dot-com bubble. Even Eric Schmidt, the former CEO of Google, recently renounced his original optimism about AI in an article for The New York Times.
Nvidia’s latest quarterly results are a perfect example of the strange psychology that governs the market today in relation to AI. Between April and July 2024, the chipmaker posted record revenue of $46.7 billion. Yet, despite such impressive figures, Nvidia was punished on the stock markets with drops of almost 3% (something that would have been due to the company failing to meet investor expectations regarding its data centers for the second consecutive quarter).
On Wall Street, the AI hype is being experienced with both unbridled optimism and a great deal of anxiety. That’s why, while some praise the efficiency emanating from AI, others can’t help but lament the huge spending consumed by the trendy technology, Jackie Snow writes in an article for Quartz.
Investors are probably aware that, while they can’t speak openly about the dire consequences of a potential AI bubble, they can’t ignore this phenomenon either, because if they did, they would inevitably be guilty of negligence.
The limited or nonexistent clarity among experts when discussing the AI bubble is undoubtedly influenced by the high stakes involved in the hottest technology of the moment. Not surprisingly, in recent months, spending on AI infrastructure has contributed more to the growth of the US economy than spending by consumers themselves. All the more reason, therefore, to tread carefully when referring to a phenomenon that could have disastrous consequences for the techie industry, but is simultaneously a source of many economic joys for this sector.
Fuente: www.marketingdirecto.com
