The Rise of AI Washing and False Hype

Companies like Equinix are leveraging AI hype to boost valuations by exaggerating their AI capabilities. However, research firms like Hindenburg warn that this could lead to AI washing, a tactic where companies make false claims about their AI prowess. Recently, the SEC penalized investment advisory firms for misleading investors with AI washing tactics. The history of tech hype, from the dot com bubble to metaverse mania, shows that AI washing is a recurring phenomenon that can mislead investors and inflate valuations.