Palantir CEO Alex Karp sends AI bubble warning but US private investments hit historic $1.35 trillion

Palantir CEO Alex Karp has issued a warning regarding output of Artificial Intelligence (AI) might not justify the investments, as per a report of Yahoo Finance. The shocking statement comes at a time when many analysts have raised apprehensions about AI bubble.

Karp said that while AI market is "very large", output value may not match the actual cost.

Meanwhile, investments in AI in the United States of America have jumped. Private fixed investments have touched $1.35 trillion in second quarter. The staggering figure is second highest in the history, according to details cited by The Kobeissi Letter.




Wall Street stocks ended mixed on Friday as investors looked ahead to Nvidia's quarterly results next week and worried that the Federal Reserve may hold off on cutting U.S. interest rates in December. The Nasdaq ended higher and the S&P 500 finished marginally weaker after an early selloff that dragged all three major Wall Street indexes down more than 1 per cent.

Investors in recent days have fretted about the pace of rate cuts and pricey valuations of heavyweight artificial intelligence stocks that have fueled much of the U.S. stock market's gains in recent years.

Nvidia, Palantir and Microsoft each gained more than 1 per cent.

AI chipmaker Nvidia will be at the center of Wall Street's attention when it reports quarterly results on Wednesday, with investors eager for fresh evidence that a race to dominate the emerging technology is not losing steam.

FAQs

Q1. Which shares have gained the maximum?
A1. Nvidia, Palantir and Microsoft each gained more than 1 per cent.

Q2. What are top three indexes of U.S. Stock Market?
A2. Top three indexes of U.S. Stock Market are S&P 500, Nasdaq, Dow Jones.