AI is everywhere, leaving investors exposed if the technology doesn’t pan out as expected You didn’t believe it, did you? You didn’t trust the financial adviser, the 401(k) materials, the fund managers, and analysts, right? You didn’t nod your head and think, “That sounds smart,” when they told you diversification is a sound strategy?
Today we all basically have one bet: AI. It’s more than just the “Magnificent Seven.” The so-called diversified index funds are crammed with AI. Bond buyers are sitting on AI risk.
Mortgage borrowers are sitting on it. What to look for in the next wave of IPOs, after SpaceX made history Play video: What to look for in the next wave of IPOs, after SpaceX made history **See also:**The hottest part of the AI trade could be turning into its biggest weakness Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I would like to receive updates and special offers from Dow Jones and affiliates.
I can unsubscribe at any time. Now, with AI doomageddon a full-fledged panic, our bet just became a serious threat. If AI doesn’t pan out or become profitable, or if people don’t start paying for it, we’ll have a lot of chips with which to measure our food rations.
So, where are we and how did we get here? First, the AI industry — Anthropic, Alphabet’s Google , Meta Platforms , OpenAI and others — started this frenzy with wild promises. Leaders talked about massive economic benefits: efficiencies, products and a remade labor market that sounded terrible to workers but great to business leaders looking to slash expenses.
McKinsey & Co. said AI would add up to $4.4 trillion to the global economy. AI founders said it would be bigger and faster than the industrial revolution. For a product that could kill us before it learns to tell time, that’s quite a marketing choice. **Don’t miss:**AI leaders want to ‘pace the frontier’ as part of a safety slowdown.
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