According to Bloomberg, on October 12, HockTan, CEO of Broadcom, said at an event in Singapore that the AI boom has attracted a group of investors who are like gamblers. He believes that some of these investors simply don't understand what they are actually betting on.
Chen Fuyang said: 'Many investors have no idea what they are investing in. They set extremely unrealistic expectations, only to find themselves almost as if they were in a casino.'
He said that many AI companies, including OpenAI, are losing billions of dollars each year. Such services require massive investments in high-end chips, data centers, and model development. The entire industry has yet to find a sustainable business model.
Chen Fuyang – Bloomberg
He believes that insufficient funds may become the next bottleneck that restricts industry growth.
According to reports, AI cloud computing company Firmus Grid, which received investment from NVIDIA, withdrew its IPO application last week. This indicates that investors are increasingly skeptical of AI infrastructure companies that rely heavily on estimated future revenue for valuation.
"When I was young, I went to arcades to play games. My parents gave me 10 US dollars in game coins, and after ten minutes they were all gone. In the end, there was no harvest. Many companies are in this state now." Chen Fuyong said.
