The AI boom is heading toward a massive financial crash
Joachim Klement writes: I calculate that over the past four quarters, 93 per cent of US GDP growth was explained by tech investments. Even at the peak of the technology, media and telecom bubble [which burst in 2000], it barely reached 60 per cent. The developers of large language models such as OpenAI and Anthropic are preparing for blockbuster initial public offerings later this year to benefit from investor optimism about their growth. Meanwhile, the hyperscalers Microsoft, Alphabet, Amazon, Meta…