AI economics – Weekly Geek

Ars Live recap: Is the AI bubble about to pop? Ed Zitron weighs in.

“It’s not gonna be one Bear Stearns moment,” Zitron explained. “It’s gonna be a succession of events until the markets freak out.” The crux of the problem, according to Zitron, is Nvidia. The chip maker’s stock represents 7 to 8 percent of the S&P 500’s value, and the broader market has become dependent on Nvidia’s… Read More »

Is the AI bubble about to pop? Sam Altman is prepared either way.

Still, the coincidence between Altman’s statement and the MIT report reportedly spooked tech stock investors earlier in the week, who have already been watching AI valuations climb to extraordinary heights. Palantir trades at 280 times forward earnings. During the dot-com peak, ratios of 30 to 40 times earnings marked bubble territory. The apparent contradiction in… Read More »