"Ready adoption and fast diffusion of AI might warrant the tremendous investment flows of past years and could create revenue and profit streams quickly. We might well be standing on the precipice of a bubble popping that will lead to massive valuation corrections, but digital twins stand to benefit from advancing AI either way - however, the timeline of AI-enabled applications of digital twins might move."
"Since the start of 2023, AI-related companies have ballooned in valuation. OpenAI has been closely associated with starting the AI frenzy with the release of ChatGPT at end of 2022. The company was valued at $29bn in 2023 and reached $500bn in October of 2025, with observers wondering if the company could pull off a $1tn initial public offering soon. AI-chip leader Nvidia's stock meanwhile has multiplied by 13 between the beginning of 2023 and end of October 2025, making it the first $5tn company ever."
AI valuations surged sharply since 2023, driven by breakthroughs such as ChatGPT and heavy investment in AI chips and platforms. Major firms and related companies experienced dramatic market value increases, with notable examples reaching unprecedented valuations. Rapid adoption and diffusion of AI could justify recent investments by generating near-term revenue and profits, yet a market correction remains possible. Digital twins are positioned to gain from AI advancements in most scenarios, though deployment timing for AI-enabled digital twin applications may accelerate or delay. AI functions as an enabling technology that will transform many industries over the long term.
Read at ComputerWeekly.com
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