"For months there have been fears that artificial intelligence is a bubble and that it is about to burst. As the Guardian US tech editor Blake Montgomery explains, the magnificent seven Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla make up one-third of the value of the S&P 500, the index of the 500 biggest stocks in the US market. All are heavily invested in AI. Never before has so much of the economy been dependent on one technology."
"And despite the trillions of dollars invested, AI is yet to show a way it can sustainably turn over profits. So what happens, asks Nosheen Iqbal, if one day the faith falters, the money stops coming in and the bottom falls out? Photograph: Angela Weiss/AFP/Getty Images"
Fears have persisted for months that artificial intelligence is a speculative bubble poised to burst. Seven major technology companies—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla—now constitute roughly one-third of the S&P 500 by market value. All seven have made substantial investments in AI, producing an unprecedented concentration of economic exposure in a single technology. Despite trillions poured into AI, the technology has not yet established a clear path to sustained profitability. A sudden collapse in investor confidence or a sharp reduction in funding could produce severe market consequences given that concentration.
Read at www.theguardian.com
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