AI's Profit Paradox: Bubble or Breakthrough?
Amid AI selloffs and trillion-dollar losses, the real issue isn't overhyped tech but underdeveloped monetization.
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AI Companies Under Heavy Scrutiny! What Exactly Is Wall Street Worried About?
Some say they’re worried that AI threatens software stocks. Others say they’re concerned about Big Tech spending too much. Still others point out that OpenAI has burned through so much money that it might go bankrupt.
Indeed, we’ve seen that recently, almost every company even remotely tied to AI has been falling. The overall software ETF IGV has already dropped a cumulative 30%. Among Big Tech, Microsoft, Google, Amazon, and Meta have collectively lost more than $1 trillion in market cap — largely because of excessive AI investment! Stocks related to OpenAI — such as Nvidia, Microsoft, Oracle, and AMD — are also having a tough time.
So where exactly is the root of the problem? Why has AI, once universally hyped and chased by everyone, suddenly become something people are running away from? The reason is actually very simple: AI isn’t making much money yet!
If AI could truly achieve large-scale monetization, nearly all the concerns mentioned above would disappear, and the U.S. stock market would almost certainly enter the next bull cycle.
So the real question is: Why is AI so powerful, yet still not very profitable? And in the short term, can we actually see large-scale AI monetization arrive?
