As someone who grew up with modern computer technology and at one time earned my living from it, and as someone who not only lived through the dot.com financial collapse but has also owned an ecommerce business for over 21 years and has survived multiple economic downturns, it has been plainly obvious to me that the current financial frenzy over chat AI hype is one of the largest developing financial bubbles being blown up with no real model of generating revenue at this time.
And yet, hardly any other financial analyst has come out to expose this very dangerous financial bubble that could burst at any time, and potentially sink the entire economy, until today.
But that financial analysis over the current spending frenzy regarding AI did not come from any financial analysts in the U.S., but by the Chinese Government.
China is the world's second largest investor in technology start-ups by venture capitalists, with only the U.S. spending more.
The Chinese government might be regulating the AI industry to prevent a financial crash over this wild speculation in the Tech sector over OpenAI, based on an opinion piece published earlier today in a Chinese financial publication.
Chinese shares related to artificial intelligence plunged after a state media outlet urged authorities to step up supervision of potential speculation.
The ChatGPT concept sector has “signs of a valuation bubble,” with many companies having made little progress in developing the technology, the Economic Daily wrote in a commentary Monday:
"Regulators should strengthen monitoring and crackdown on share-price manipulation and speculation to create “a well-disclosed and well-run market,” according to the newspaper, which runs a website officially recognized by Beijing. Companies, it said, should develop the capabilities they propose, while investors should refrain from speculating."
Of course, the U.S. is also threatening regulation over the Tech sector, including TikTok, which currently provides $billions to the U.S. economy.
The other huge concerns regarding the feeding frenzy over new AI technology, as I reported in a recent article, is that there are legal issues regarding privacy and copyright issues that could severely curtail using the new OpenAI technology, if not outlaw it altogether.