"Fears of an AI bubble have plagued Wall Street for months as stocks have reached record highs, despite AI revenue lagging far behind soaring stock prices. Payne noted that recent developments are scaring a whole lot of folks who lived through the tech bubble. Off-balance? Off-balance sheet? So a couple of weeks ago, Jensen Huang, he entered into talks with OpenAI. He guaranteed loans so he could getthey would buy his chipsbecause they were thinking about buying Google's chips."
"Then Jensen said yesterday that China's going to win the AI race, in part because China subsidizes their businesses, right? Think about that for a moment. So all of a sudden, yesterday, we also hear fromCFO at least, the story goesthat OpenAI suggests that they want, or should have, a government backstop, he said, adding: I will say today OpenAI has walked back those claims, but let's face it, the damage is done."
OpenAI's CFO reportedly sought a government backstop and the company later walked back that claim, triggering market pressure and renewed fears of an AI bubble. Stock prices have soared while AI revenue continues to lag, raising concerns among investors who remember the tech bubble. Jensen Huang entered talks with OpenAI and guaranteed loans to secure chip purchases amid worries about chip sourcing and competition with Google. Jensen also suggested that China could win the AI race partly because of government subsidies. Some argue that if taxpayers bear losses from support, they should share in any profits. The AI trade remains in early stages with significant upside in compute deployment and infrastructure buildout.
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