Generative AI valuations plummet, $1T wiped out
anthropic's valuation drops 25% in weeks, nvidia down 29% in 6 months, signaling a potential bubble burst in generative ai investments.
since august 2023, generative ai investments have faced significant challenges. gary marcus warned of financial struggles, citing high training costs, such as $10 billion for claude 5.5, and expensive inference. the market has finally responded, with anthropic's valuation dropping 25% in weeks, from $2t to $1.5t, and nvidia down 29% in 6 months. oracle and coreweave also saw significant declines, 35% and 54% respectively. this downward trend may continue, with $1 trillion wiped out in a single day in the us stock market.