"The circular nature of the deals and partnerships we've seen across the AI space may make some skeptics and those worried about a looming AI bubble burst a bit woozy. Undoubtedly, it seems like a new deal is coming in every couple of weeks. And if each new announcement or rumor has you on pause, you're definitely not alone. And while adding more dominoes to the row might make for a more spectacular implosion at some point down the road,"
"With Amazon ( NASDAQ:AMZN) most recently reported to be considering a big $10 billion investment in OpenAI, the web of deals across big tech titans seems to be getting bigger and more interlinked. Does that mean the risks are higher? Possibly. But adding more dominoes to the row might not be all too big of a deal if there's nobody who nudges one of them anytime soon."
Interlinked AI deals and partnerships have increased market attention and concern about a potential bubble. Large proposed investments, such as Amazon's reported $10 billion consideration for OpenAI, deepen connectivity among tech titans and amplify perceived risks. However, the existence of many deals does not guarantee a near-term collapse; a cascade requires a triggering event and precise timing. Market timing is difficult and often counterproductive. Diversified investors focusing on individual value names can mitigate downside risk and may be better positioned to ride market volatility. Deal-making can continue despite investor skepticism, and measured portfolio strategies reduce the importance of bubble debates.
Read at 24/7 Wall St.
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