Is the AI Bubble Bursting? Signs Point to a Potential Tech Winter
For the past three years, AI has captivated Wall Street and Silicon Valley. However, recent events are raising serious questions about its future. Meta has frozen hiring and is reportedly considering downsizing its AI division; OpenAI CEO Sam Altman acknowledges a bubble; ChatGPT-5 underperformed; Coreweave's stock plummeted; MIT research reveals 95% of generative AI projects failed to increase revenue; and Anthropic and OpenAI are providing their products to the US government at minimal cost. These signs have investors worried, rushing to buy put options, fearing a repeat of the late-90s dot-com crash. While some believe this is a temporary correction, the lack of demonstrable profitability in the AI sector is concerning, suggesting a potential AI winter may be on the horizon.