Could the AI bubble burst? More and more alarming signs are emerging

The artificial intelligence bubble appears to have burst in China, with companies losing significant value since July. In the U.S., Google's recent investor briefing revealed disappointing results in its search and advertising sectors, contributing to a major stock decline. Despite increased revenue from cloud services, Google has yet to profit from its search business. A report warns that Big Tech firms are increasingly using risky debt-based financing for AI investments, leading to historical overvaluation in global stock markets. The report highlights the challenges in assessing true revenue generation in the AI sector due to circular financing practices. Additionally, Anthropic AI reported a substantial net loss while planning a major IPO.