CEO of a $134 billion software giant blasts companies with billions in funding but zero revenue: 'That's clearly a bubble, right... it's, like, insane' | Fortune
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CEO of a $134 billion software giant blasts companies with billions in funding but zero revenue: 'That's clearly a bubble, right... it's, like, insane' | Fortune
"Companies that are worth, you know, billions of dollars with zero revenue, that's clearly a bubble, right, and it's, like, insane."
"Maybe I should just go on a break for, like, six months and come back and it'll be, like, really financially good for me."
"I think like 12 months from now, it'll be much, much, much worse."
Investors continue to fund AI startups with billion-dollar valuations despite zero or minimal revenue, producing an unsustainable market bubble. Venture capitalists privately express exhaustion with the hype cycle and consider pausing investments. Circular financing among market participants is artificially inflating valuations and is expected to deteriorate before a genuine correction occurs. Short-term market wobbles signal that company leaders should reassess strategy and focus on fundamentals. Staying private can provide strategic insulation from IPO timing risks, while firms that rushed to go public may face different outcomes amid increased volatility.
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