Elliott Management, a hedge fund with approximately $70 billion in assets, has raised concerns about Nvidia and the AI industry, describing them as being in a 'bubble,' reports Financial Times. The firm doubts the sustainability of current AI investments and believes that many AI applications are not viable or cost-effective.
The hedge fund expressed skepticism about the ongoing purchases of Nvidia's GPUs by large technology companies, stating that these companies may not continue to buy in such large quantities. Elliott Management questioned many AI technologies' practical utility and efficiency, suggesting that they may not deliver the promised returns. Elliot Management is certainly not the only one to express concerns about the AI industry as a partner of Sequoia Capital recently calculated that the AI industry needs to make at least $600 billion per year to pay for the already made investments. The AI industry is not even close to that number.
