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A pattern of interlocking investments in the AI sector, termed "circularity," is raising concerns as it echoes the "round-tripping" practices of the dot-com era.
Federal Reserve Chair Jerome Powell stated the current AI investment boom is not a repeat of the dot-com bubble, citing that AI companies have real earnings and profits.
Google's AI, the focus of an $85 billion investment plan, made a fundamental math error, implying 2 billion equals 2 million, raising reliability questions.
The AI market boom is increasingly compared to the dot-com bubble, with analysts pointing to unsustainable spending and circular financing as key risks.
The current AI investment boom is drawing strong comparisons to the dot-com era, raising questions about market stability amid soaring valuations and infrastructure spending.
