Financial markets have a steady undulation from bubbles to crashes only to then head back into the next bubble full of good cheer. This is true for toxic mortgage products, for crypto currencies and for the market as a whole.
The AI industry is a growing bubble. Investments in companies building AI applications are hot. Very hot. The question for the financial markets (and by extension, for all of us) is where we are now on the wave. Is that wave almost at its peak and the AI bubble is about to crash, or is it still a long way off?
'America's idea of winning is to create a God. That God will live in San Francisco. And the God works for America,' Chinese economist Andy Xie tells Tegenlicht episode When will the AI bubble burst?
Based in Shanghai, Xie analyzes and comments on the relationship between U.S. and Chinese financial markets for Bloomberg and the South China Morning Post, among others. Analyses that are seen as contrarian and provocative.
Xie began his career at the IMF, worked for U.S. investment bank Morgan Stanley and has since predicted many bubbles and crashes in financial markets: the Asia crisis in the late 1990s, the Internet bubble at the turn of the century, the credit crunch in 2008 and the bubble in the Chinese housing market.
According to Xie, he has never called anything a bubble that ultimately turned out not to be a bubble. And now, according to the Chinese economist, the "AI fantasy bubble is about to burst... Those who think they know exactly when the bubble will burst can make much, much money.
