The AI Investment Bubble: Trends and Caution

This chapter examines a potential $10 billion deal between Elon Musk's XAI and Oracle, analyzing its implications for the AI sector and Oracle's position among tech giants. It critiques the exuberant flow of capital into AI despite modest revenue growth, drawing parallels to past tech booms and warning of a possible market bubble. The discussion highlights upcoming earnings reports and emphasizes the current state of AI applications, noting the industry's lack of consumer adoption amid significant investments.