The US has intervened to prop up the Japanese yen to protect US bond yields and the artificial intelligence bubble, but fundamental weaknesses in Japan's economy and reliance on US tech momentum mean interventions will fail.
The Bank of England warns the UK faces recession risk if the AI stock bubble bursts, potentially causing a 2.2% GDP fall. Governor Andrew Bailey cited "triple whammy" risks from overvalued AI stocks, slower adoption, and uncertain long-term winners, while ruling out new regulations.
SoftBank Group CEO Masayoshi Son, 68, announced plans to lead the conglomerate for another 10-15 years, focusing on AI and robotics. He dismissed 'AI bubble' fears as "blasphemy," emphasizing AI's potential and SoftBank's significant investments in companies like Arm, OpenAI, and ABB's robotics unit.
Micron's chief business officer acknowledged the growing capabilities and market share of Chinese chipmakers CXMT and YMTC, noting their output is primarily sold domestically. This validation comes as AI infrastructure spending reshapes the memory chip market, with Micron reporting record results and a strong outlook.
SoftBank CEO Masayoshi Son announced plans to lead the tech conglomerate for another decade or more, focusing on AI and robotics. The 68-year-old dismissed "AI bubble" fears as "blasphemy," stating AI's potential is just beginning, and aims for "artificial superintelligence."
South Korean stocks experienced their sharpest decline in over three months, with the KOSPI index dropping nearly 10% due to fears of an AI-driven semiconductor rally pushing valuations to unsustainable levels, triggering a market-wide sell-off and circuit breaker.
Global markets experienced a significant tech sell-off Tuesday, with Nasdaq down 2%, as investors shifted focus from US-Iran conflict to AI companies. Concerns over an AI spending bubble, potential Fed rate hikes, and major tech stock drops like Alphabet and SpaceX fueled the decline, impacting Asian markets as well.
AI pioneer Yann LeCun criticized Elon Musk's xAI as a "failure" due to team departures and warned of a potential "big bubble explosion" in the AI industry, citing high operational costs and investor-funded usage.
The narrative around AI is polarized, with claims of both utopia and doom. Experts suggest much of the apocalyptic rhetoric is hype, driven by investor speculation and a desire to justify high valuations. While AI impacts jobs, its primary current application may be employee surveillance, not mass replacement.
Jeff Bezos downplays AI bubble concerns, stating long-term benefits outweigh risks and comparing the current AI boom to the 1990s biotech bubble. He also advocates for eliminating taxes for the bottom 50% of American earners.
The Iran war is causing stagflation and starvation due to reduced oil and fertilizer supplies, with potential for a global economic shock. Rising bond yields could pop the AI bubble, and petrol prices may reach $10 a gallon this summer.
Jeff Bezos believes AI investments, even in a potential bubble, will drive technological progress. He compares the current AI boom to the 1990s biotech bubble, highlighting that good ideas will outweigh failures and benefit society.
US tech leaders are at an "inflection point" with agentic AI, but compute demand far exceeds supply, a gap expected to persist until late 2027. This comes amid skepticism about AI infrastructure spending returns, amplified by cheaper Chinese AI models.
BlackRock CEO Larry Fink refutes AI bubble concerns, citing a significant shortage in computing capacity, chips, and memory. He predicts a future where financial markets will trade futures of compute, highlighting the growing demand for AI infrastructure. BlackRock is actively investing in data centers and energy assets to meet this demand.
Claims of nimbyism are a misunderstanding: the movement is about whether regular people have a say in fundamental decisionsSince the surreal scene at the 2024 presidential inauguration, when a row of big tech titans took their VIP seats and signaled their new alliance with Maga, the Trump administration has rolled out the red carpet for Silicon Valley’s AI ambitions and shareholder priorities.Washington has doled out billions in lucrative federal subsidies and contracts to the cash-rich sector, bloating an AI bubble that experts warn may imperil the entire economy while prohibiting any guardrails on the fast-moving technology. Continue reading...
Four of the Magnificent Seven tech stocks reported quarterly results, with Amazon, Alphabet and Microsoft beating expectations thanks to double-digit cloud computing growth driven by AI adoption. Meta missed expectations and saw its stock fall 5% after announcing increased capital expenditures. The companies plan to spend $650bn collectively on AI infrastructure in 2026, while over 92,000 tech workers have been laid off globally this year as AI replaces human labor.
If you want to know whether the AI bubble is bursting, there's only one publicly traded company that will tell you: Oracle. That's right, the database company. Oracle has burned its boats and pivoted to AI, but not in any kind of usual way. It is not a foundation model builder like OpenAI or Anthropic, […]
