Investors May Be Ignoring Weakening Economy Amid the AI Hype

ng.investing.com/analysis/investors-may-be-ignoring-weakening-economy-amid-the-ai-hype-204496

By Jesse Felder | Jul 15, 2024 09:01

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After Sequoia recently suggested that the AI bubble may be reaching a tipping point, Goldman Sachs came out and made a similar point.

Jesse Felder Tweet

Tech blogger Ed Zitron took it a step further, concluding “Generative AI is decidedly not the future.”

Ed Zitron Tweet

Famed tech investor Roger McNamee went so far as to say that, “More evidence supports the view that LLMs are a scam than the Next Big Thing.”

Roger McNamee Tweet

And venture capitalist, Bill Gurley pointed out that there is much more potential from smaller, less expensive generative AI models than from the massive and obscenely expensive ones Big Tech is hyper-focused on developing.

Bill Gurley Tweet

Meanwhile, investors in these “hyperscalers” of generative AI are so enamored they may be overlooking important developments in the real economy.

Jesse Felder Tweet

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Investors May Be Ignoring Weakening Economy Amid the AI Hype

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