{"id":6821,"date":"2025-11-19T19:11:11","date_gmt":"2025-11-19T19:11:11","guid":{"rendered":"https:\/\/musictechohio.online\/site\/ai-investors-furious-bubble\/"},"modified":"2025-11-19T19:11:11","modified_gmt":"2025-11-19T19:11:11","slug":"ai-investors-furious-bubble","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/ai-investors-furious-bubble\/","title":{"rendered":"AI Investors Furious at Suggestion That There\u2019s an AI Bubble"},"content":{"rendered":"
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As dark clouds continue to gather<\/a> over the stock market, and with fears of a ready-to-burst AI bubble growing<\/a>, some investors are furious that anybody would even question the industry\u2019s enormous valuations<\/a>, astronomical spending sprees<\/a>, and severely lacking financial model<\/a>.<\/p>\n

Many industry leaders have<\/a> acknowledged<\/a> that there\u2019s likely a bubble. But as Axios<\/em> reports<\/a>, die-hard AI investors are furious at the suggestion.<\/p>\n

\u201cThe reality is, the world\u2019s not going to stop and AI is coming, so you have a choice, you could put your head in the sand or you can embrace it,\u201d RedBird Capital Partners managing partner Gerry Cardinale said at an Axios<\/em> event this week<\/a>.<\/p>\n

Others downplayed previous comparisons<\/a> of the AI bubble to the dot-com implosion.<\/p>\n

\u201c\u2018The bubble\u2019 is a pejorative term,\u201d Sequoia Capital partner Roelof Botha said at this week\u2019s event.<\/p>\n

\u201cYou have so many industries that are relatively ossified and ripe for disruption,\u201d he said. \u201cAnd AI isn\u2019t just a new distribution mechanism or a new interface. It is fundamentally a set of capabilities that can upend industries.\u201d<\/p>\n

Not everybody shares that kind of boisterous optimism, at least when it comes to the immediate future. Even Google CEO Sundar Pichai himself made headlines this week after telling the BBC<\/em><\/a> in an interview that \u201cthere are elements of irrationality\u201d in the current AI boom.<\/p>\n

If a bubble were to burst, \u201cI think no company is going to be immune, including us,\u201d\u00a0he said.<\/p>\n

Hugging Face CEO Clem Delangue similarly said during this week\u2019s Axios<\/em> event that \u201cwe\u2019re in a [large language model] bubble,\u201d renaming the current phenomenon, \u201cand I think the LLM bubble might be bursting next year.\u201d<\/p>\n

However, Delanuge opined that LLMs are \u201cjust a subset of AI.\u201d<\/p>\n

After a bruising couple of weeks, the stock market rallied on Wednesday<\/a> ahead of AI chipmaker Nvidia\u2019s earnings call, an anxiously-awaited litmus test<\/a> that has made investors skittish as it approaches.<\/p>\n

\u201cThey\u2019re going to come in great, I suspect, but if they don\u2019t, then there\u2019s going to be a problem,\u201d Certuity chief investment officer Scott Welch told CNBC<\/em><\/a> of Nvidia\u2019s earnings.<\/p>\n

The S&P 500 jumped in early trading, but has since stabilized substantially lower than its late October record high<\/a>.<\/p>\n

But given the widespread discussions surrounding an AI bubble, investors are bound to ask some hard questions, given the now enormously expensive shares of tech companies.<\/p>\n

\u201cPeople are just starting to ask the question, as they should, \u2018You guys are committing to spending trillions of dollars into your data centers and your AI capabilities and everything else, when are we going to see the results of that?\u201d Welch told CNBC<\/em>. \u201cIt\u2019s not a question that they\u2019re doubting them.\u201d<\/p>\n

\u201cIt\u2019s just that it\u2019s a question of timing,\u201d he said, adding that the AI trade \u201cmay not go to the Moon tomorrow.\u201d<\/p>\n

More on the AI bubble:<\/strong> After Attempting to Short the AI Bubble, the \u201cBig Short\u201d Guy Suddenly Closes Up Shop<\/em><\/a><\/p>\n

The post AI Investors Furious at Suggestion That There\u2019s an AI Bubble<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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