Sometimes booms go bust. That may be happening with artificial intelligence. “There’s growing evidence that the hype machine is slowing down,” said The Washington Post. Major tech companies like OpenAI, Microsoft and Google have unveiled gaudy new products with fanfare, but AI so far is “yet to upend the way people work and communicate with each other.” And profits are turning out to be elusive as well. Why? That’s partly because AI tech “remains hugely expensive to build and run.”
Jeremy Grantham, an investor known for predicting financial crises in 2000 and 2008, “believes that AI is a bubble that could start letting out some air,” CNN said. Tech stocks reached “eye-popping heights” in 2023 and the trend is continuing this year, but Grantham believes “the market is overdue for a sharp pullback.” Other elite investors are also sounding the alarm, Business Insider said, pointing to the “dot-com crash” that devastated the tech sector in the early internet era. “This feels a lot like 1999,” said Jeffrey Gundlach, CEO of DoubleLine Capital.
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