The AI vibe shift is upon us
17 days ago
- #AI
- #Market Trends
- #Tech Industry
- A vibe shift around artificial intelligence (AI) is occurring, causing investors and businesses to reconsider their stance.
- Meta has instituted a hiring freeze and may downsize its AI division after previously offering large signing bonuses for AI talent.
- OpenAI CEO Sam Altman has mentioned the word 'bubble' in interviews, hinting at potential overvaluation.
- ChatGPT-5, expected to be a game-changer, has been labeled a flop.
- Coreweave, an Nvidia-backed cloud computing company, lost nearly 40% of its value in just over a week.
- MIT researchers found that 95% of generative AI programs failed to increase revenue as intended.
- Anthropic and OpenAI are providing AI products to the US government at minimal cost despite lacking profitability.
- Investors are buying 'disaster puts' to hedge against a potential market crash similar to the dot-com bust.
- Tech stocks like Nvidia, Microsoft, and Palantir have declined amid broader market concerns.
- Experts suggest the AI bubble bursting will be a gradual process, not a single event, driven by unmet expectations.