The Dot-Com and Housing Crisis Pattern Has Reached the AI Market

The boom in the artificial intelligence industry is dependent on continuous investments, and a reduction in these investments could lead to a crisis. The Wall Street Journal has warned that a similar pattern observed before the burst of the dot-com bubble and the 2008 financial crisis may now emerge in the AI market as well. In past crises, companies needed new capital to continue operations but failed to attract investment, which is referred to as a "funding gap." During the dot-com bubble, companies like "Pets.com" continued to attract capital despite being unprofitable, and they quickly disappeared when the flow of capital stopped. In 2007, a company named Freddie Mac sold $6 billion in preferred stock but failed to attract the necessary capital. The main concern is whether AI companies can continue to attract investment. OpenAI and Anthropic have high costs and do not have publicly declared profits. The continued funding of OpenAI depends on support from investors like Nvidia and SoftBank. The initial public offering of Anthropic has been delayed, and Holtec Newlier has halted its IPO. These signs may indicate caution in the market. The dependency of the AI boom on massive investments is a critical issue, and disruptions in funding for large companies could have widespread consequences. Financial booms may gradually subside, and the reduced ability of companies to attract new capital reveals new pressures.

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