After artificial intelligence (AI) stormed the tech world, the story is starting to shift. What once appeared to be an unstoppable AI gold rush is now being viewed by some experts as a boom that may be financially fragile. Experts and investors are becoming increasingly concerned about rising AI-related expenses, while the money companies earn from selling AI services isn’t rising fast enough to cover those costs. To fund the buildout, companies are taking on more debt and issuing more stock, and that’s making investors very nervous.
One of the latest signs of this cooling sentiment involves AI favorite Nvidia Corporation (NVDA). The chip giant had previously announced plans to invest up to $100 billion in OpenAI to help train and run its latest AI models. That blockbuster deal was supposed to give the ChatGPT maker both the cash and the advanced chips it needs to stay ahead in a fast-intensifying AI race. But now, according to reports, the plan has stalled, with both sides rethinking the structure of their partnership.
