The AI bubble is here with $1 trillion in losses already

Just as economists speculated whether the stock market is plagued by an AI bubble that could burst quickly, Openai CEO Sam Altman admitted he believes there is one. “Are we at a stage where the entire investor is overly excited about AI?” Altman said in an interview with Verge 10 days ago: “My opinion is yes.”

“When bubbles occur, smart people get overly excited about the core of the truth,” Verge said in Altman’s comments.

Cognitive scientist and AI researcher Gary Marcus believes that market wobbling is more than anything else due to GPT-5. It wasn’t a failure, he said, but it was “overwhelming” and “disappointing”, which “had really awakened a lot of people.” Marcus said, “The GPT-5 was basically sold as an AGI (human-level intelligence), but that’s simply not the case. It’s not a terrible model, and that’s not a bad thing, but it’s not a quantum leap that many people have been led to expect.” Then came a massive MIT survey that added numbers to what so many people seem to be feeling. What happened next? The big money said investors panicked and continued selling tech, supported by concerns that big investments in AI would not be rewarded, as the S&P 500 reduced its value by $1 trillion. Report August 24th.

Mark Zuckerberg stops hiring AI

Without hesitation, and fearing the AI ​​bubble, Mark Zuckerberg It’s blocked Meta’s recruitment for artificial intelligence staff has hit the brakes on billions of dollars in employment.

ChatGpt was mostly announced in November 2022 with fanfare, but soon became the fastest growing high-tech product in history. The incredible ability of chatbots to mimic human communication and solve problems ultimately sparked hope of building a machine as clever as human.

However, Altman accepts companies that flop with their latest releases because they are unable to recognize how changes in model tone will affect consumers. He pointed out that more customizations will come to ChatGpt in the near future.

“To accommodate a very diverse use case and people, you need a very different kind of product product,” he said.

Plans to spend trillions of dollars

Altman said Openai should “become “not in the not-so-distant future, and we should expect many economists to squeeze their hands and think, ‘Oh, this is so crazy’.”

Altman hedged, asking what he plans to find those trillions of dollars. “I think we can design a very interesting new kind of financial product for computing financing that the world doesn’t understand yet,” he said. “We’re working on that.” At the same time, Altman said he hopes that some key AI investments will not pan out, as some corporate investors lost when the internet infrastructure was built during Dotcom Boom. “Someone will lose an incredible amount of money. We’re going to make who is who and a lot of people will make an incredible amount of money,” he said. “And my personal belief is, I might turn out to be wrong, but overall, this is a huge net victory for the economy.”