"In a technology investing career that now spans 43 years, I have never seen a phenomenon remotely like large language model AI,"
"Big tech, journalists, politicians, CEOs and investors are all convinced that AI is an inevitable Next Big Thing that will change everything in our economy and society for the better."
"many, if not most of the current players are bound to fail. The knock-on effects of these failures may be catastrophic, especially for equity investors."
The AI industry faces risk of collapse due to runaway LLM investment projected at over $700 trillion by the end of 2025. Companies may repeat that level of spending next year absent catastrophe. Underlying economic indicators are weak. Even if LLM technology delivers on its promise, many current players are likely to fail, creating potentially catastrophic knock-on effects for equity investors. A small set of massive tech corporations are racing to build essentially identical LLMs, burning billions to pursue global monopoly status. Firms that lose the race face severe financial distress.
Read at Futurism
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