Today we published the MIT NENDA report which said that the integration of artificial intelligence (AI) to increase revenue failed in 95% of companies and Meta wants to reduce their AI division employees. Before that, Sam Altman was quoted as saying that the AI market is currently in a bubble phase.
When the US stock market opened today, all the stocks of the world's major technology companies, especially those involved in the AI industry, fell. NVIDIA suffered a 3.5% decline in value with AMD falling 5.44%. Apple, Alphabet, Meta, Microsoft, Tesla, Broadcom, and Oracle all also fell by a smaller percentage.
Due to predictions that the AI bubble may burst at any time, investors began to sell company stocks before it was too late. The issue of the use of AI is very hotly debated on social media and also by the government. In the early stages, AI promised the potential of making the world easier with menial work that humans could forget.
In just two years, AI technology has started to have a bad stigma of increasing pollution, using excessive water supplies and in Malaysia alone, new data centers emit the same amount of carbon as 2 million cars.
The prognosis for the future of AI is also in jeopardy because new models launched do not offer the expected increase in capabilities. In fact, in the case of OpenAI, GPT 5o which was designed to be more power efficient was hated by GPT 4o users because it was too schematic to force the old model to be offered again even at the expense of the company.