TECH
Should an 'AI bubble' worry you? Experts say 'yes'
NYU Stern professor Aswath Damodaran, known as the 'Dean of Valuation', has warned that a correction in AI valuations could have an impact much bigger than the dot-com crash.
Damodaran says the estimated size of the AI market by players such as SpaceX is too high.
Industry analysts are worried about the trillions of dollars going into AI infrastructure, using debt. Some are worried about a 2008-like global financial crisis.
How does a potential AI bubble burst affect you?
- •IMPACT ON YOUR INVESTMENTS: Indian mutual funds, pension funds, and global tech stocks have increasing exposure to AI-driven companies.
- •UNCERTAINTY IN HIRING: If AI valuations fall, companies may cut spending, delay expansion plans, and reduce hiring.
- •INDIA'S AI PUSH MAY BE HURT: India is spending a lot in building data centres and AI infrastructure. A slowdown in AI could affect investments and have a ripple effect on the economy.
- •NOTE: This is not investment advice or fear-mongering. You should do your own research to arrive at your own conclusions.
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