Is the AI Boom a Bubble? Investing in AI During a Bubble

The article discusses the current AI boom, driven by breakthroughs in large language models, massive investments by tech giants, and increased adoption of automation. It examines the key players in the AI ecosystem, the level of investment, and whether the growth is sustainable.

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The article explains that the current AI boom is driven by a convergence of breakthroughs in large language models like GPT-4, massive investments by Big Tech companies, and increased adoption of automation across industries. The key players in the AI ecosystem span hardware, software, and services, including Microsoft, NVIDIA, Google, Amazon, and Meta, as well as AI startups like Anthropic, Cohere, and Mistral. The level of investment in AI has reached historic levels, with Microsoft committing over $10 billion to OpenAI in 2023 and NVIDIA's revenue tripling due to demand for AI hardware. While the enthusiasm for AI is high, some experts warn that the market may be running ahead of real adoption and monetization, especially in the case of early-stage generative AI startups. However, AI is also being compared to the early internet era, with the difference that the tech giants funding AI are profitable and reinvesting their earnings, rather than borrowing to fund growth.