AI Crash: Evaluating the Crash and the Rise
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Is AI Crashing or Coming Back? (AICrashOrComeback) – February 6, 2025, 10:15 AM GMT
The artificial intelligence (AI) sector has seen a huge boom in recent years, but now it faces serious questions: Will it continue to rise or are we on the verge of a collapse similar to the dot-com bubble burst in the early 2000s?
Signs of an AI Crash
1. Market saturation and slowing investment
• After years of massive investment inflows, some AI startups are beginning to suffer from a lack of funding, leading to layoffs and the closure of unprofitable projects.
• Indicators such as the decline in the shares of major AI companies may reflect a slowdown in market confidence.
2. Technical and ethical issues
• Growing concerns about the security risks of using AI, especially in deep fakes and biased decisions.
• Tighter regulations in the EU and US could limit the spread of AI technologies, potentially reducing profits and delaying development.
3. New innovations are fading
• After the explosion in language models (such as ChatGPT and Gemini), some are starting to feel that innovation is slowing down, with recent improvements being iterative rather than revolutionary.
Signs of a strong comeback