Part 4/9:

AI investment has surged, with tech giants investing around $400 billion this year alone. If economic conditions deteriorate or corporate budgets tighten, such spending could slow—signaling that companies struggle to monetize AI effectively. Reduced investment might indicate waning confidence or the realization that some AI initiatives aren’t delivering expected returns.

2. Supply and Demand Imbalances

Currently, there is high demand for AI models, with supply constrained in many areas. However, increased competition could lead to a flood of new models, pushing prices downward. If prices drop significantly, it suggests supply is catching up, which may erode profitability for AI companies. Observing prices and model offerings can offer early clues about market corrections.