AI bubble

For the loss of effectiveness by software, see Model collapse.

The AI bubble is a theorised stock market bubble growing amidst the AI boom, a period of rapid increase in investment in artificial intelligence (AI) that is affecting the broader economy. Speculation about a bubble largely originates from concerns that leading AI tech firms are involved in a circular flow of investments that are artificially inflating the value of their stocks. Speculation has also come from comparisons between the current environment of tech financing and that of the dot-com bubble of the 1990s and 2000s.

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