"The generative AI boom is fueled by staggering investments (including OpenAI's multibillion-dollar chip deals), but for many companies, profitability as a result of these investments has remained elusive, leading some economists to warn of an AI bubble."
"In this Q&A, Harvard Business School's Andy Wu wades through the potential and hype of the new technology."
Staggering investments, including multibillion-dollar chip deals by leading AI firms, are fueling rapid expansion in generative AI. Many companies have not yet turned these investments into sustained profitability, creating uncertain returns and financial pressure. Some economists warn that speculative valuations and heavy capital deployment could produce an AI investment bubble. The technology offers significant potential for productivity gains and new products across industries, but intense hype may outpace practical commercialization. Careful evaluation of business models, cost structures, and measurable returns is necessary to separate durable opportunities from speculative excess and guide prudent investment decisions.
Read at Harvard Business Review
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