Michael Burry Thinks AI Companies Are Overestimating the Useful Life of Chips. Here's Why That Could Be a Big Problem
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Artificial intelligence (AI) has been a tremendous growth opportunity for tech companies in recent years. It's led to them investing heavily in data centers, chips, and other crucial infrastructure to ensure they don't fall behind their rivals. While it's still debatable just how much of a payoff there will be from all these investments, it has led to surging valuations for many top tech companies.But one person who is a bit skeptical on the hype in AI is Michael Burry, hedge fund manager and founder of Scion Capital. He's known for predicting the housing crash in 2008. Now, he's turned his attention to AI, where he believes that companies are overestimating the useful life of chips. While that may not seem like a big deal, it could mean that companies are underestimating their expenses, and that could be a big problem for investors.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
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