It does seem like an indicator that the bubble is cooling and investors are starting to pull back. If a few big institutional investors get spooked and start quietly exiting their positions, it could trigger a full blown market panic. At that point, we’ll see a classic death spiral. The companies that have been living on investor faith, with no real path to profitability, are going to run out of cash and hit the wall leading to an extinction level event in the AI ecosystem.
afaik that tends to happen often though
It does seem like an indicator that the bubble is cooling and investors are starting to pull back. If a few big institutional investors get spooked and start quietly exiting their positions, it could trigger a full blown market panic. At that point, we’ll see a classic death spiral. The companies that have been living on investor faith, with no real path to profitability, are going to run out of cash and hit the wall leading to an extinction level event in the AI ecosystem.