This Sky-High Metric Says We're Probably in an AI Bubble

Is the stock market in an AI-fueled bubble that's destined to pop? That's the trillion-dollar question as the major indices switch daily between euphoria and angst. Tech giants are making massive investments in AI data centers, loading up on debt and increasingly using complex strategies, such as special purpose vehicles (SPVs), to keep that debt off their balance sheets. SPVs don't have the cleanest history, playing a central role in the Enron scandal at the turn of the century.Meanwhile, cash-burning OpenAI is signing long-term deals for enormous amounts of AI infrastructure despite not having the resources to pay for those deals. Analysts at HSBC Global Investment Research estimate that OpenAI will need to secure $207 billion in new financing by 2030, based on its commitments https://seekingalpha.com/news/4525336-openai-could-need-207b-in-financing-by-2030-amid-compute-capacity-pledges-hsbc. The company will also need to increase its revenue dramatically.While these developments point to a likely AI bubble, there's one metric that's flashing a major warning sign.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool