Is AI a bubble?
The news is full of speculation at the moment that we are about to see a bursting of a ‘bubble’ in AI. ‘Will the AI bubble pop?’ asks the Sun. The New York Post predicts that the entire market is about to ‘burst’, with a market correction to follow. But it isn’t just tabloids getting carried away – the IMF is concerned about an AI correction, as are luminaries from the financial world such as Ray Dalio and Michael Burry. Burry, who famously predicted the 2008 financial crisis, has denounced Anthropic and OpenAI (the creators of Claude and ChatGPT) as ‘bubble companies’. And there is already some evidence in the stock market of worries about AI infrastructure spend.