Zoho founder Sridhar Vembu says AI hype is biggest bubble
Business
Zoho founder Sridhar Vembu thinks the current AI hype is "the biggest bubble yet."
He responded to a viral X post, pointing out that while the tech is impressive, the way money flows in AI right now could be risky.
He urged everyone to be careful, saying, "How to navigate this without losing one's shirt is the key."
Cloud spending inflates AI valuations
The viral post (with nearly 850,000 views) called out how giants like Microsoft and Amazon invest in AI startups like OpenAI and Anthropic.
Then those startups are required to spend big on their investors' cloud services.
This makes revenues and valuations look bigger than they really are, which reminds some people of the dot-com crash days.