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We might finally know what will burst the AI bubble | BBC Science Focus Magazine

sciencefocus.com · 3,170 words · saved by 1 readers

Many experts and analysts are warning that the AI industry is overvalued and heading for a crash. But why?

A chill seems to be setting in over Wall Street. Tech billionaire Peter Thiel’s hedge fund recently sold its entire $100m (£76m) stake in Nvidia, the world’s most valuable chip company at the heart of the artificial intelligence (AI) boom. Meanwhile, Michael Burry – famed for sounding the alarm before the 2008 financial crisis and Christian Bale’s depiction of him in the movie The Big Short – bet almost $200m (£152m) against the chipmaker. Why would two investors of their calibre turn against a company whose share price has risen almost 15-fold in 5 years? Partly because this isn’t just…

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