Yes there is , if one follows the funding of OpenAI and also X AI it’s pretty obvious. Now the jerking is passing onto AMD.
How much money are these guys burning and how much are they making is going to be a salient point sooner or later.
I fully believe that AI is a seminal technology that will grow exponentially for a period and become pervasive but there will be a market reckoning as there always is with these things.
And NVIDIA, and so that passes on down the line to TSMC, etc…
I’m of the thought that it’s going to keep growing until it legit crashes, then we’ll find something sustainable and actual workable companies will come out of it longer term, much like the .com boom / bust.
The trick, of course, is to try to catch some (most) of the upside without getting killed on the downside - I think people tend to overlook how long it took to recover from the .com bubble (and the housing bubble) even if you were “avoiding” the risky individual stocks and “just” in on the S&P.
AI is a similar stock market bubble as the dot.com boom some 25 years ago. Awesome tech and services which will be used for many decades to come, but overvalued companies
However… the question is how high the bubble will go before bursting? And which companies will recover best and be the world leader stocks by making money on AI in the years following the burst bubble?
Edit: Oops, or as Poindsand was posting the same while I was typing slow
I’m going to go with that as well. The soon to be listed SPAC AI CCCX has given me a 62% return in a few weeks, and the warrants are more like 400+%.
My plan if this keeps up is to wait and let the CCCX shares spike, exercise the warrants, sell 1/2 immediately, and let the other 1/2 sail. The hope is that this all doesn’t happen in an hour in an upside-down V pump n dump.
Also in the news, the US Is taking 10% of Trilogy Metals to begin the opening up of Alaskan REE. Up up up 150% AH.
Citron’s view mentions that Citron suggests CCCX (the SPAC tied to Infleqtion) “offers a more promising opportunity compared to Rigetti,” arguing that Infleqtion is “significantly ahead in the quantum competition” and that the market may reprice CCCX at a premium above Rigetti
So much for the $10 listing? They can just raise the price? And what? How and when do we know what the warrant pricing will be?
Grok spoke:
The warrant exercise price for CCCX (trading as CCCXW) is predetermined at $11.50, as disclosed in the SPAC’s IPO prospectus and standard for most SPACs to provide upside leverage above the $10 trust value. This doesn’t change via the merger unless specific anti-dilution clauses are triggered (e.g., major new share issuances below fair market value, which is rare and would be detailed in filings). Warrants become exercisable 30 days after merger completion (or the later of one year post-IPO or business combination), with a typical 5-year expiration from closing. If the post-merger stock trades above $18 for 20 out of 30 trading days, the company can force redemption at a nominal $0.01, prompting holders to exercise early to capture intrinsic value.
I asked Grok if I should get a second mortgage and buy more warrants. No. I should not.
Companies investing in other companies, circles of mutual admiration is a sign of a bubble which is gonna burst…. But nobody knows when and how much it will drop, The eternal question
Yeah it’s dangerously interconnected. I see OpenAI being the Amazon of AI, likely their valuation will follow a similar trajectory over many years including a dot.com type bust. Anybody see their latest Sora videos, crazy.
that’s wild. Then what? Just put it on a platform?
