The Air Is Coming Out of the AI Bubble
MIT now says Gen AI creates no value. What did Philo say last year about the AI flaw?
Negativity is starting to grip markets with:
news of META’s AI division restructuring
JPOW not looking to cut rates
MIT reporting that Gen AI pilots in enterprises not creating value etc.
and more that we cover in the Philochat and on the Philoinvestor X
MIT?
The GenAI Divide: State of AI in Business 2025, a new report published by MIT’s NANDAinitiative, reveals that while generative AI holds promise for enterprises, most initiatives to drive rapid revenue growth are falling flat.
Despite the rush to integrate powerful new models, about 5% of AI pilot programs achieve rapid revenue acceleration; the vast majority stall, delivering little to no measurable impact on P&L.
Well I’ll be damned.. This doesn’t sound like great news for the EVERYTHING IS AI MARKET does it? No, it doesn’t.
Read the Biden’s Techno-Imperial Cycle piece from last july which warns on exactly this and deconstructs the whole boom/bust process we are going through from a Sorosian POV. It’s removed from paywall now.
Philochat and Jackson Hole
This week in a subscriber-only Philochat I gave the game plan for what I expect in markets post-Jackson Hole on Crypto, Stocks and the USD. To be honest, things are already unfolding for us with the drop in stocks and the Dollar staying strong-ish.
Why Subscribe?
Because this is just the tip of the Philoberg 🦉🧊
Because we
Nailed Trump 2.0 with multiple warnings on overpromises.
Anticipated the crash and bounce levels in Breakout by Philo months ahead.
Followed up with Back from the Brink when Trump 2.0 staged a walk-back.
But there’s more…
On August 4th we published What the hell is happening?
And touched on so many angles and dimensions that are not even getting enough air time — that you literally can’t do without.
Lo and behold, markets peak one week later with the reasons we highlighted in the piece gaining the market’s attention.
By the way, this is what I said about BTC in that piece:
For this to dump hard we need either 1) a broader market sell off or 2) a Crypto-specific event which awakens doubts and creates a lack of confidence in the asset class.
For the moment prices are surfing the Weekly EMA10, a key indicator for me.
—> And what’s Bitcoin doing now? You guessed it, breaking the Weekly EMA10.
I’ve said enough for today, you know what to do.
P.S. Don’t miss:
This week’s piece on Apple’s AI strategy and how Apple is the King of AI but no one knows it.
Last week’s piece on NVIDIA’s China problem (spoiler: it’s massive)
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