The shift in sentiment is obvious: investors are no longer buying beautiful presentations and abstract benchmarks for new LLMs. They are demanding to see return on investment (ROI). The multi-billion dollar injections into building data centers and purchasing chips have not yet converted into comparable revenue growth for software companies. The fear that current valuations of tech startups are stretched to the limit is forcing European capital to move into defensive assets. The market is entering a sobering phase: AI must prove its commercial viability amid tightening credit limits.
Source: Reuters
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