Alibaba Head Warns AI Industry Is Showing Signs of Bubble

For years, experts have warned of the productive intelligence bubble.

To date, companies have continued to pour tens of billions of dollars in building huge data centers to meet the requirements of the increasingly thirsty intelligence models of power.

Whether the sector will continue to grow or find itself in a rude awakening, it guesses anyone. But there is a remarkable thing that we have begun to see even technology executives are concerned that huge spending may collapse under its weight. Slow demand can fight in order to keep up with the increasing rapid display side, an unbalanced equation that led to executive managers.

Despite the commitment to spend more than $ 52 billion on developing artificial intelligence over the next three years, the head of the Chinese technology giant, Joe Tsey is now warning of a potential bubble in establishing AI’s data center,, Bloomberg Reports. During an event in Hong Kong on Tuesday, Tsai said that many of these projects are being built without a customer in mind.

“I start seeing the beginning of a kind of bubble,” said Tsai. Bloomberg.

Alibaba shares decreased by about four percent today, in response to the news.

Perhaps one of the biggest warning signs so far was the explosive appearance of the start of the Chinese operating Deepseek, which left the Silicon Valley in chaos after the establishment of Amnesty International first -class on a small part of the cost of its Western counterparts.

The company’s announcement of the thinking model, which could keep pace with the most advanced offers in Openai, has sold more than $ 1 trillion, with scary investors wondering whether they have largely paid such as Openai and Meta for years.

Despite the tremendous tremors, companies continue to pour astronomical amounts in building data centers. A few weeks after his second term, Donald Trump announced a 500 billion dollar infrastructure giant, which is called Stargate, with a large purchase of Openai, the company Softbank, the Oracle technology giant, and the Abu Dhabi fund managed by Ai Fund MGX.

Last week, the news emerged that the first database complex in the project in the small city of Texas in Abyan will have enough space for up to 400,000 NVIDIA AI chips, making it one of the largest well -known computing groups of artificial intelligence when completed by mid -2016.

But for Tsai, it remains to see whether this type of spending is already justified.

“I start anxious when people build databases on specifications,” he said this week. “There are a number of people coming, and the coming funds, to collect billions or millions of capital.”

Outside Stargate from Trump, Amazon adhered to $ 100 billion to build artificial intelligence infrastructure. The CEO of Meta Mark Zuckerberg has pledged $ 65 billion for this year, while the mother Gogle ALPHABET will invest $ 75 billion.

To Tsai, this could be a terrible idea in the long run.

He said at this week: “I am still surprised by the type of numbers that are put forward in the United States about investing in artificial intelligence,” he said at this week.

He added: “People speak, and literally talk about 500 billion dollars, and several $ 100 billion. I don’t think this is completely necessary.” “I somehow think that people are investing before they see today, but they expect much more demand.”

More about spending on artificial intelligence: Microsoft retreated from expensive new data centers after the CEO expressed doubts about the value of artificial intelligence