Loeb Debunks Bubble Theory: Investing in AI Is Far From Flushing Money Down the Toilet, We're Just Scratching the Surface of the Boom

BlockBeats News, May 30th, Dan Loeb, founder of Third Point and manager of a $24 billion hedge fund, expressed strong bullish sentiment on AI, stating that the current AI frenzy is fundamentally different from the Internet bubble era. Loeb pointed out that major tech companies have announced a total investment of over $700 billion this year and over $1 trillion next year in AI infrastructure. However, these companies have very strong profitability, generating huge cash flows, and most of the expenditure can be supported by internal funds. "If you don't believe that these capital expenditures will bring returns, it's like believing they are flushing money down the toilet, which is very different from the Internet bubble—we shorted the bubble at that time and made decent profits in those years." Loeb emphasized that he does not currently see a valuation bubble.

Loeb used Anthropic as an example to support his optimistic outlook: its latest funding round valued the company at $965 billion, up from $380 billion in February, with annualized revenue soaring from $14 billion to $47 billion during the same period. The adoption rate and practicality of the product are rapidly growing, and the upcoming new models are highly anticipated. "You can very persuasively argue that we are just scratching the surface of the AI frenzy, and the enterprise application level is just beginning, so I am in the camp of optimists." In Third Point's latest holdings as of the end of March, Amazon, Alphabet, Meta, and Nvidia are all on its top holdings list.