An AI Bubble Warning : Predictor of 2008 crisis says valuations of tech firms are inflated

Among the very few who predicted the 2008 subprime crisis that led to some of the biggest investment banks going bust and a global recession was Dr Michael Burry. He became a reclusive celebrity after actor Christian Bale played him in the iconic movie The Big Short. Burry is back in the news again, predicting that there is now an AI bubble waiting to burst, which implies the value of the tech companies that have touched stratospheric valuations of trillions of dollars could nosedive.

Burry started a Substack newsletter service and one post of his especially targets Nvidia, which makes most of the GPUs fuelling the data centres. Burry compared it to a company called Cisco, which had a similar role to play as the internet era dawned but soon got badly undone by the dotcom bust.

But Burry’s is not the only voice of apprehension. In an interview with the BBC, Google’s CEO Sunder Pichai said that there were elements of irrationality, and should there be a drawdown, every company would be affected, including his own. Nvidia, worth more than $ 4 trillion, is taken as the prime example because it is the most valued company in the world. But with competition catching up, this status will be difficult to sustain.

Meta’s Smartglasses

Meta is bringing its latest Oakley AI smartglasses to India. Positioned as an eyewear for athletes and those who want AI built directly into their gear, it will be available for sale from next month. The glasses, which come with an integrated camera and open-ear speakers, double up as an everyday AI assistant, allowing users to ask questions, record moments, access information, or get assistance while staying focused on their activity.

Personal Shopper

Following other tech platforms such as OpenAI, Google and Perplexity, Microsoft is now entering the AI shopping space. It is adding new AI-led shopping-focused features to Copilot in the Edge browser. The new update will enable users to get access to product insights, price history and also to compare prices. It is claimed that the feature will be able to tell you if there’s a cheaper deal elsewhere.

Flipping Out

Apple’s longrumoured foldable iPhone is said to be getting closer to a launch. According to a report, the phone is expected to arrive sometime next year and will be priced substantially more than other iPhones. Reports claims that the foldable iPhone will feature a crease-free display, premium materials, and a slimmer hinge design.