AI bubble fears grow
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What to know about growing AI bubble concerns
A growing chorus of voices is warning there could be an artificial intelligence (AI) bubble, as companies whose fortunes are closely tied to the technology see their valuations skyrocket.
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High-profile figures, from OpenAI CEO Sam Altman to Amazon founder Jeff Bezos, have suggested in recent months that investors have become overexcited about AI, as companies bet big on the technology with multibillion-dollar investments.
This has been compounded by concerns about the increasingly circular nature of AI spending, as the likes of Nvidia, OpenAI and AMD announce new deals that seem to feed themselves.
“The question is — are we in an AI bubble?” said James Angel, an associate professor at Georgetown University’s McDonough School of Business.
“You never really know until afterwards whether today’s prices were justified by the future cash flows of these companies or whether investors were overly exuberant.”
Since the advent of OpenAI’s ChatGPT in late 2022, AI has become a major draw for investors. Nvidia, once a relatively obscure company focused on producing chips for video games, has become the most valuable company in the world.
In July, the chipmaker became the first public company to surpass a market capitalization of $4 trillion, as its chips remain the lifeblood of the AI boom. It currently........





















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