Loeb Rebuts Bubble Theory: Investing in AI Is Far From Flushing Money Down the Toilet, We've Just Scratched the Surface of the Trend

BlockBeats News, May 30: Dan Loeb, founder of Third Point and manager of a $24 billion hedge fund, expressed strong optimism about AI, stating that the current AI boom is fundamentally different from the Internet bubble era. Loeb pointed out that large tech companies have announced a total investment of over $700 billion this year and over $1 trillion next year in AI infrastructure. These companies have very strong profits, are generating huge cash flows, and most of the spending can be supported by their own funds. "If you don't believe that this capital expenditure will bring returns, it's like thinking they are flushing money down the toilet, which is very different from the Internet bubble era—we shorted the bubble back then and made decent profits in those years." Loeb emphasized that he currently does not see a valuation bubble.

Loeb used Anthropic as an example to support his optimistic view: its latest financing 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 increasing, and the upcoming new models are highly anticipated. "You can persuasively argue that we have just scratched the surface of the AI boom, and the enterprise application side has just begun, 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.