Core Viewpoint - There is a growing concern that the AI sector may be experiencing a financial bubble due to unsustainable business models, particularly as most AI users access tools for free, leaving companies without meaningful recurring revenue [3][5][10] Group 1: Financial Viability of AI Companies - Companies like Nvidia have established profitable business models through hardware sales, contrasting with pure-play AI software companies that struggle to find viable monetization paths [2][4] - The significant investments in AI by firms such as Microsoft raise questions about how they will achieve returns without scalable revenue streams [2][4] - The prevailing belief is that many AI providers cannot survive indefinitely without charging for their services, as the current model relies heavily on free access [5][9] Group 2: Market Dynamics and User Behavior - The majority of AI users do not pay for services, which challenges the premise that companies can monetize their offerings effectively [5][8] - Historical trends indicate that successful business models typically require a substantial number of paying customers, which is not the case for most AI applications currently available [3][5] - The expectation that users will transition from free to paid services is viewed as unrealistic, as there is no precedent for such a shift in business history [5][10] Group 3: Future Outlook - Analysts predict a potential collapse in the AI sector if companies cannot establish a viable pricing model for their services [8][10] - The need for AI applications to integrate into corporate environments and demonstrate tangible value is critical for future monetization efforts [9]

In this issue of Forbes Daily:- Is there an "AI bubble"? We asked the experts: AI chatbots.- See our new America’s Most Powerful Women In Sports list- Harry and Meghan, Steve Bannon and more sign petition urging AI "superintelligence" banRead more: https://t.co/qLBfgOiBhF ...

Group 1: Women in Sports - Forbes has released its inaugural list of America's Most Powerful Women In Sports, featuring 25 influential figures including NFL franchise owners, athletes, and coaches [2] - Notable individuals on the list include Gayle Benson, Coco Gauff, Dawn Staley, and Billie Jean King, the latter being the first athlete to earn over $100,000 in a year [2] Group 2: Market Reactions and Economic Trends - Shares of Warner Bros. Discovery increased by 11% following news of potential sales interest from multiple parties, as the company plans to split into two publicly traded firms [11] - Investors are retreating from metals like gold and silver, with gold's value dropping over 5% amid a technical correction, as noted by Standard Chartered analyst Suki Cooper [5] - Cathie Wood's Ark Innovation ETF has surged more than 80% in the past year, outperforming most ETFs and mutual funds, despite concerns about an AI bubble [6] Group 3: Technology and Data Privacy - TikTok has altered its data-sharing policies, now allowing sharing with regulatory authorities and law enforcement, raising concerns about user privacy [12][14] - The Trump Administration is negotiating a sale of parts of TikTok's U.S. business, which is subject to approval from both President Trump and Chinese leader Xi Jinping [15] Group 4: Cryptocurrency and Investment - Joe Naggar is launching an independent hedge fund with $300 million under management, focusing on digital asset markets and frontier technologies [7]

Company Developments - DraftKings (NASDAQ: DKNG) has entered the prediction market industry through the acquisition of Railbird Technologies, a CFTC-licensed exchange, marking a strategic expansion beyond sports betting [3] - The company plans to launch a new mobile app, DraftKings Predictions, allowing users to trade on real-world outcomes across multiple exchanges [4] Industry Trends - Netflix (NFLX) is collaborating with Mattel (NASDAQ: MAT) and Hasbro (NASDAQ: HAS) to produce merchandise for the K-Pop Demon Hunters franchise, which includes toys, games, and collectibles [4][5] - The merchandise will be available at retail starting spring 2026, coinciding with the 2026 holiday season [6] Market Reactions - DraftKings shares rose by 5.4% in premarket trading following the announcement of its acquisition [3] - Mattel's shares closed 2.45% higher despite reporting an earnings and revenue miss, while Hasbro's shares experienced a slight decline of 0.5% in premarket trading [7]

Company Developments - DraftKings (NASDAQ: DKNG) has entered the prediction market industry through the acquisition of Railbird Technologies, a CFTC-licensed exchange, marking a strategic expansion beyond sports betting [3] - The company plans to launch a new mobile app, DraftKings Predictions, allowing users to trade on real-world outcomes across multiple exchanges [4] Industry Trends - Netflix (NFLX) is collaborating with Mattel (NASDAQ: MAT) and Hasbro (NASDAQ: HAS) to develop merchandise for the K-Pop Demon Hunters franchise, which includes toys, games, and collectibles [4][5] - The merchandise rollout is set to begin in spring 2026 and will feature products inspired by popular K-Pop groups [6] Market Reactions - DraftKings shares rose by 5.4% in premarket trading following the announcement of its acquisition [3] - Mattel's shares closed 2.45% higher despite reporting an earnings and revenue miss, while Hasbro's shares experienced a slight decline in premarket trading [7]

And so how do you describe your investment process. I'm looking at your 13F, your most recent one at least, and they obviously changed, but I'm seeing names that I remember us discussing last year, SLM Corp. Your prior to that, Concentrics, which didn't do particularly, >> has not done has not done well. >> You still own these things.>> We do. So our we're are long-term oriented. So as you know, going back to Buffett, patience and time is the friend of a long-term investor.And usually it's that long-term ho ...

Core Insights - The demand for computing services remains strong and is expected to continue growing, with companies struggling to keep up with this demand [2][3] - Concerns about an AI bubble are being discussed, but the influx of investment from major companies like Microsoft, OpenAI, Google, and AWS indicates a healthy market rather than a bubble [4][6] - The narrative around circular investing is viewed as misleading; while there are choke points in the industry, they do not equate to systemic issues [9][10] Company-Specific Analysis - CoreWeave has raised over $25 billion, and its debt structure is designed to support its business model, where clients sign contracts that back the debt incurred [11][15] - The company is experiencing rapid revenue growth but is currently operating at a loss, raising questions about the sustainability of its debt load [12][14] - The long-term strategy involves hyperscalers building some of their infrastructure in-house while still relying on third-party services like those provided by CoreWeave [17][18]

RT Bloomberg Live (@BloombergLive)Is an AI bubble coming? "I think it remains to be seen. We are not taking that strategy." @cohere's @aidangomez #BloombergTech@Lynnmdoan⏯️ https://t.co/nnRX4STmti https://t.co/tQGNnbDBi7 ...

Jordi Visser (@jvisserlabs) explains why we shouldn't be worried about the "AI bubble." https://t.co/Gg4vRomJyL ...

AI & Economy - The economy is currently experiencing an AI-driven boom, which is a positive factor contributing to outperformance compared to the rest of the world [2][3] - This AI boom is characterized as a "rational bubble" with significant investment in various AI companies, leading to competition and innovation [3] - While the AI sector promises substantial productivity gains, only a few companies are expected to emerge as winners, implying potential losses for some investors [3][4] Gold & Dollar - Global concerns about the US dollar's stability are driving central banks and institutional investors to diversify into gold [5] - The increasing allocation to gold by central banks and institutional investors, coupled with speculative activity, is expected to continue pushing gold prices upward [6] - Gold price may reach $5,000 this year [7] Bitcoin - Bitcoin's fundamental holding is still smaller than gold, and the speculation side is much larger than for gold, resulting in higher volatility [7] - Bitcoin is still evolving and has not yet developed the fundamental characteristics of gold [7][8] Financial Stability & Private Credit - Isolated cases of financial strain are expected due to excessive risk-taking in pursuit of returns, but these are not considered systemic threats to financial stability [9][10] - Private credit is viewed as separate from the banking system, providing financing to companies that might not otherwise have access [8][11]