Why the initial exuberance around AI is becoming irrational

THE signs are there that the speculation on artificial intelligence (AI) stocks has crossed the line from giddy optimism into downright silliness.

A frenzy for over-priced AI stocks, a Big Tech splurge on expensive infrastructure and rumours of ultra-loose terms on startup investments could all be strong indictators that the AI exuberance is becoming irrational.

AI remains one of the most transformative technologies ever invented; where the Internet was a universal storefront that could sell anything; AI is a universal robot that can automate everything. As with the Internet, however, even a revolutionary technology can be overhyped.