Concerns about an Artificial Intelligence (AI) bubble in the US technology sector are being released on Wednesday after the closure of financial markets before the second quarter earnings report from NVidia.
The manufacturer of the processor for the data center and server farm is seen as a bellweather for the AI subsector of the tech industry, facing concerns over its long -term profitability after heavy investment in view of the 2022 release of OpenEAI’s chatbot chatbot.
Compared to the move of about 3 percent in the last several quarters, traders are swinging upwards in the company’s stock value or above $ 260 billion.
Peter Sidorov and others of Dutash Bank wrote to investors on Monday, “The major event in corporate income will be the result of Nvidia on Wednesday, which comes in the form of technical shares, saw their biggest five-day pullback before April,” Dutash Bank’s Peter Sidorov and others noted investors on Monday.
Pulback followed the comments of OpenIE CEO Sam Altman’s comments on how AI is experiencing a bubble, which is a constant overwell duration that eventually pops when investors get cold legs or they do not get returns that they expected.
“Are we in a phase where investors are ovexited about AI as a whole? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,” Altman Told the verge,
Others in the field of AI and Analytics have expressed similar concern about a possible bubble after rapid adoption of new technology.
The AI platform company said, “It was ten times, fifty times the fastest adoption of any type of adoption.
But despite the comprehensive use of AI and aggressive marketing push from companies and technical investors, the possibilities for profitability are far from a lock.
A recent report by the Massachusetts Institute of Technology (MIT) found that 95 percent of the organizations using AI are not earning any money despite the widespread promotion of technology.
“Integrated AI pilots are extracting millions in just 5 percent of the price, while the vast majority are stuck with no average [profit and loss] Effect. This partition model does not seem to be powered by quality or regulation, ”found by researchers.
The report described AI’s commercial sufficiency state as “high adoption, low changes”, given that only two out of eight major economic sectors were showing “meaningful structural changes”.
Media and commercial services were industries in which workflows were greatly influenced by AI, while healthcare, pharmaceuticals, retail, finance, manufacturing and energy saw much less or no changes related to technology.
Dataiku’s Dufferti stated that companies are nervous to abandon the control of essential business operations such as sales and supply chain management to AI.
He said, “It is very good to advise chatbots, but really scary to change the workflow.” “Companies are really more concerned about giving place to autonomous systems that are deciding about their business, even if those decisions are relatively low-level.”
Tech companies, famously adopting the user and prefer market share on revenue growth, are going into debt on the assumption that they will be able to mudlize themselves after establishing a customer base.
But 95 percent of the companies did not make any money from AI three years after their highly promoted arrival, this trend is nervous for many investors. Facebook, initially it took five years to dow, is considering downgrating its AI unit, New York Times. Informed earlier this month.
It is difficult to estimate the total investment in the region, as most of it is private, although the investment firm Warden Capital had estimated direct expenditure in AI-related chips and data centers earlier this year. Whether the profitability of the future corresponds to that expenditure and may be more than that, or it decreases and exposes a bubble, it remains to be seen.
“It’s like dot-com [era]”Financial exercise leader Jason Bishara, with NSI insurance group, told The Hill, talking about the normal market conditions to increase the AI and cryptocurrency areas,” When the dot-comments collapsed and most of them disappeared, the good people reached the top and many people made luck on them. ,
Technical activists say what is lost in marketing, lobbying and deregurate push around AI, the fact that “AI” is actually a catch-all phrase that describes many different types of software products, some of which may be more commercially viable than others.
Machine learning large language models can be structurally different from the facial and voice recognition software based on nerve network, which is a type of filtering algorithm. Some of these sources are considered better as the development of older analytics software than a fundamentally new technology.
“There is actually a spectrum,” Dofty said.
Even in cases where it is commercially viable, AI can do – and can run as law, limit its use and make companies weak for legal action.
AI has displayed racial bias When it comes to offering hostage loans to the owners of the house, it is used in an algorithm ValueAccording to the Department of Justice. There are other potential legal violations of all types that the software may unknowingly commit as it wants to optimize commercial returns.
Another indication of potential stress in the technical field came as an unexpected 10 percent of the government’s stake in Chipmekar Intel, which was announced by the Trump administration last week.
Intel warned the shareholders of “adverse reactions” as a result of the government’s share.
Other adverse results may be experienced as a result of the company’s announcement or completion of transactions, “the company has written in an SEC filing.” Given the lack of recent American examples … it is difficult to overcome all possible results. ,
