Arthur Hayes: AI Bubble is in Debt and Loss-Making Company Valuations, Not AI Itself

BlockBeats News, August 19th, BitMEX co-founder and Maelstrom Chief Investment Officer Arthur Hayes stated that someone questioned why he was still involved in AI/crypto projects despite believing that AI was in a bubble. In response, Hayes explained that the current AI bubble mainly lies in "debt used to build data centers," the overvalued stocks of loss-making hyperscalers and cutting-edge AI labs, rather than the AI technology and its applications themselves.

Hayes said: "Price is what you pay, value is what you get." He expressed his "100% belief in the agentic economy," a new economic model driven by AI agents.

He further pointed out that data centers built extensively with borrowed funds might eventually lead to an oversupply of computing power. However, this surplus computing power would reinforce the investment thesis and drive the development of Flop Labs, an AI+crypto project he supports.

Previously, Hayes has discussed the impact of AI capital expenditure on market liquidity, suggesting that since the commercialization of ChatGPT, a significant amount of funds has flowed into AI infrastructure development, squeezing the space for the crypto market to obtain additional liquidity.