Big Tech says AI is booming. Wall Street is starting to see a bubble.

🌈 Abstract

The article discusses concerns raised by Wall Street analysts and tech investors about the potential for a financial bubble due to the massive investments being made in artificial intelligence (AI) by big tech companies, stock market investors, and venture capital firms.

🙋 Q&A

[01] Concerns about AI Investments

1. What are the concerns raised about the sustainability of the AI gold rush?

• Analysts and investment banks like Goldman Sachs and Barclays have issued reports raising concerns about the sustainability of the massive investments in AI, arguing that the technology might not be able to generate the kind of money to justify the billions being invested.
• There are concerns that the immense amount of money being poured into AI by big tech companies, stock market investors, and venture capital firms could be leading to a financial bubble.

2. What evidence is provided about the investments in AI?

• Google is investing $12 billion per quarter in AI.
• Stock prices for major AI companies like Google, Microsoft, and Nvidia have seen significant increases this year.

[02] Analyst Questioning on AI Investments

1. What questions did analysts ask Google's CEO about the company's AI investments? On Google's quarterly conference call, analysts peppered CEO Sundar Pichai with questions about when the company's $12-billion-a-quarter investment in AI would begin paying off.