"Michael Burry says the AI boom is a bubble of epic proportions, and there's no way to stop it from popping and taking down the stock market and economy with it. 'The government will pull out all the stops to save the AI bubble to save the market to save the economy,' Burry wrote on X late Tuesday. 'The problem is too big to save.'"
"Noble wrote that 'OPENAI IS FALLING APART IN REAL TIME.' He pointed to the ChatGPT maker's raft of challenges, including fierce competition from Google's Gemini 3 and other AI models, soaring costs, widening losses, and Elon Musk's lawsuit against it. 'This is not surprising and will not end with OpenAI,' Burry responded on X. The vast sums 'being spent and lent by the richest companies on Earth will not buy enough time-by the very definition of mania.'"
The AI boom is characterized as a massive speculative bubble that could inevitably pop and severely damage the stock market and broader economy. Government intervention is expected but judged unlikely to prevent systemic collapse. OpenAI faces intense competition from Google's Gemini 3 and other AI models, escalating costs, widening losses, and a lawsuit from Elon Musk. Massive capital being spent and lent by the wealthiest companies will not buy sufficient time. OpenAI's $1.4 trillion eight‑year spending target is criticized as unrealistic, even as annualized revenue rose from $2 billion in 2023 to more than $20 billion recently.
Read at Business Insider
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