tech
Investors may be hitting pause on the AI run-up
Chip stocks have been slumping from their record highs.
TL;DR
- Investors are hitting pause on the AI run-up, causing chip stocks to slump from record highs.
- Companies are realizing the high operational costs of AI, with many not fully understanding their spending.
- Some companies are exceeding their AI budgets faster than anticipated, leading to spending limits.
- While the cost of general compute is decreasing, the most advanced AI models remain very expensive.
- Demand for AI compute still significantly outpaces supply.