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AI Bubble Weekly 10
The AI bubble finally burst yesterday.
You won’t believe what the EU just did.
Over $480 Billion in market value was vaporized from AI and semiconductor companies. The “overnight” drop was over 40% and that’s just the beginning.
Ok. This was on the Chinese stock market and was all about Chinese AI companies. So it’s not the global economic/ai bubble yet. But stay with me because two more interesting things happened in the same week.
Anthropic S1
It seems like Anthropic is on its way to profitability. The company grew their revenue and showed an impressive growth. All the naysayers and ai-doomers were silenced almost instantly.
If you don’t take our costs and investments into account, we’re super-profitable.
Said almost every business ever. Of course it’s an oversimplification, but Anthropic did use some accounting tricks to “hide” their $800B of commitments to data center builds away from the main prospectus.
The $80B “loss” is of course proportional and due to their overall growth, so that part is not alarming in that particular scenario. It was expected.
