OpenAI CAUGHT By Investors: 20 BILLION SHORT Of Promises

So this morning we've got a new warning that the AI bubble may end up being a bust. Let's put this up on the screen. This is a write up from Bloomberg. The headline here is Jeffre Chris Wood sees massive capital destruction in AI. They write the most likely long-term outcome of the AI boom will be massive capital

destruction in the US with market share going to cheaper open-source Chinese models. According to Jeffre Financial Group, Inc. Initially the focus was on the cheapness of China models and the related commoditization threat facing large language models. Chris Wood global head of equity strategy wrote in a report on Friday. But now there is also

a growing realization that China has become a technological peer to the US in AI. So Zagre this has been um you know in recent times this has been one of the big financial fears about the AI development which really has like eaten the entire US economy. If you look at just construction build, what's getting

built in America and what's not, it's all like data centers. If you look at the stock market and how much of it is built on the AI boom, we really have place just a massive bet on these AI frontier AI model companies really paying off. And while they continue to lead development, they continue to, you

know, make uh to sort of set the pace of technological change, there's been this question now of whether the Chinese models aren't good enough and much much cheaper and open- source and more flexible by the way because you can since they're open source, you can sort of adapt them to your own needs. They

don't have the same sort of filters and safety mechanisms in place as the um as anthropic and open AI's models do. whether they don't effectively undercut the business model of those leading frontier companies. So that's what they're sounding the alarm about here. And then they also say, and by the way, the Chinese companies models are also