LISBON, Portugal — Top tech executives told CNBC they’re concerned about a bubble forming in the artificial intelligence sector, underscoring growing unease within the industry over soaring valuation.
In recent weeks, markets have been reckoning with the notion that too much capital is pouring into the AI boom, clouding the outlook on revenue and actual profit and putting high valuations into question.
Up to now, warnings around overstretched valuations have mostly come from investors and leaders in the world of finance. Goldman Sachs’ David Solomon and Morgan Stanley’s Ted Pick have warned of potential corrections as valuations of some major tech firms reached historic highs.
The concerns have been crystallized by famed ‘Big Short’ investor Michael Burry, who this week accused major AI infrastructure and cloud providers, or ‘hyperscalers’ of understating depreciation expenses on chips. Burry warned that profits at the likes of Oracle and Meta
may be vastly overstated. He recently disclosed put options that bet against Nvidia
