That’s fueling concerns around an AI bubble — worries that the hype around and spending on AI is out of sync with its true value. Subsequent generations of AI chips are also rapidly improving and becoming more efficient, meaning it might not be economical to continue running AI workloads on older chips even if they’re functional. “There’s the demand for generative AI from individual users … but that’s not enough for these large AI companies to recoup their investment costs,” he said. Michael Burry, the famed investor behind “The Big Short,” recently warned of an AI bubble. But the AI bubble — if it’s real — would be a different situation, said Paul Kedrosky, managing partner at investment firm SK Ventures.

Source: Egypt Independent December 20, 2025 14:41 UTC