The Economist Leader: Expect an AI Crash, Not Cataclysm
TL;DR
- The Economist's November 12 leader argues readers should expect an AI crash, but the subtitle hedges it as 'not necessarily a financial cataclysm.'
- OpenAI cut its latest fundraising target to $20B from $30B and its expected valuation to $1.25T from $1.4T as Anthropic lines up its own IPO.
- Ramp data showed enterprise token spend grew only 1.5% across August and September even as token volumes kept rising.
The Economist's November 12 leader is titled 'Why you should expect an AI crash.' The subtitle hedges the shock: 'But not necessarily a financial cataclysm.'
The piece lands into a market already pricing the thesis. Fortune reported in late October that OpenAI cut its latest fundraising round target to $20 billion from $30 billion and its expected valuation to $1.25 trillion from $1.4 trillion. Anthropic is lining up its own IPO. TechCrunch's write-up of Ramp data separately showed enterprise token spend grew only 1.5% across August and September, even as token volumes kept rising.
Our tracker has logged 410 OpenAI stories and 377 Anthropic stories in the last 90 days, including WSJ's note that OpenAI's Q3 operating loss jumped to $10.9 billion.
Originally reported by economist.com
Read the original article →Original headline: Economist Leader Warns Investors to Expect an AI Crash as Capex and Circular Financing Mount