Large Language Model AI Paradigm
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Chance of AI market correction is 'pretty high,' says ex-Meta exec Nick Clegg as he pushes back on superintelligence
CNBCยท 2025-10-16 07:09
Core Viewpoint - The artificial intelligence sector is at a high risk of market correction due to inflated valuations and unsustainable business models [2][3]. Group 1: Market Valuations - The AI boom has led to "unbelievable, crazy valuations" that do not align with company fundamentals [2]. - There is a significant increase in deal-making activity within the sector, indicating a potential bubble [2]. Group 2: Infrastructure Investments - Large hyperscalers are investing hundreds of billions of dollars in data centers, raising concerns about their ability to recoup these investments [3]. - The sustainability of business models in the AI industry is under scrutiny, particularly regarding the large language model AI paradigm [3].