The AI bubble could burst without killing ChatGPT — but you might not like what happens next

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Is it just me or are warnings that the AI bubble could burst soon getting even harder to ignore?

Over the past few years, investors have pumped extraordinary amounts of money into AI companies because they've been betting that the technology will eventually generate equally extraordinary returns.

However, there are now growing questions about whether those returns will arrive quickly enough (or ever) to justify all of that spending. For example, The Financial Times recently reported that OpenAI, the maker of ChatGPT, expects almost $280 billion in negative free cash flow through 2030.

That’s at the heart of what people mean when they talk about an "AI bubble". The argument is that investment, spending and some company valuations have whizzed way ahead of what the technology can actually earn right now.

This means that if investor confidence starts dropping, investment could dry up. Then AI companies could fail and the...

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