AI is now generating profits for big tech companies, but that does not mean the entire industry is healthy. Like the dot-com bubble, many AI companies are heavily overvalued with no proven revenue model. The hype and fast money can lead to a correction once expectations are not met.
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@pwasbeer There is currently extreme borrowing to invest in AI, especially by startups and even large companies. This makes the sector vulnerable: if interest rates rise or expected growth fails to materialize, debt can quickly become problematic. A bubble floating on borrowed money bursts extra hard.
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@pwasbeer we are living a industrial Revolution. Comparable with the Electric or Internet Revolution. Many of us, are not aware that we are really lucky to live this moment (same for BTC). We will have many correction in the market and some companies will suffer but at the end we are in a completely different scenario, as @Shell really good explained, compared with dot-com bubble.
Here the most important is to identify the winners along the IA chain ;)
Here the most important is to identify the winners along the IA chain ;)
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