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An AI bubble threatens Silicon Valley, and all of us


An AI bubble threatens Silicon Valley, and all of us.

Jim Covello, head of global equity research at Goldman Sachs, doubts the technology can recoup what’s been invested as, unlike the internet, it fails to solve complex business problems at a lower cost than what’s available today. Surveys confirm that for many workers, AI tools like ChatGPT reduce their productivity by increasing the volume of content and steps needed to complete a given task, and by frequently introducing errors that have to be checked and corrected. You can tell Wall Street is worried about a bubble, because Nvidia is hit the hardest by any bearish AI news, and even when the market panic has nothing to do with the tech industry, like when the Japan currency trade happened last summer, the Magnificent Seven suffer punishing losses.

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