Sam Altman · OpenAI · Nvidia · Wall Street · ChatGPT · DAN (Do Anything Now) · Fortune Technology
The borrowing binge by AI hyperscalers and their astronomical capital spending plans raised more red flags
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Also last year, OpenAI CEO Sam Altman’s admission that an AI bubble exists and Michael Burry’s bearish bets represented more red flags.
Key facts
- For instance, whenever AI chip giant Nvidia saw its market cap cross the $2 trillion, $3 trillion, $4 trillion or $5 trillion milestones, bears sounded the alarm
- But total enterprise and consumer AI revenue that’s headed to data centers will only be $3.6 trillion at most, putting more than $4 trillion in asset value exposed to write-down risk through 2032
- I don’t know whether this is the breaking point or another 25 or 50 basis points higher is the breaking point,” Greenhaus explained
- Also last year, OpenAI CEO Sam Altman’s admission that an AI bubble exists and Michael Burry’s bearish bets represented more red flags
Summary
Since the advent of OpenAI’s ChatGPT in late 2022, the list of possible indicators that the AI boom was about to go bust is long and keeps getting longer, leaving Wall Street asking each time if the end is finally near. For instance, whenever AI chip giant Nvidia saw its market cap cross the $2 trillion, $3 trillion, $4 trillion or $5 trillion milestones, bears sounded the alarm. The borrowing binge by AI hyperscalers and their astronomical capital spending plans raised more red flags. But earnings continued to soar, and stocks eventually rebounded to set record high after record high.