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Cheaper AI Models May Deflate Tech Giant Valuations, Warn Industry Leaders

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Nikhil Kamath and Coinbase CEO Brian Armstrong have both flagged a structural threat to the lofty valuations of major AI companies. The leaders drew comparisons between the current AI investment frenzy and historical market bubbles, including the dot-com crash. Open-source AI alternatives are rapidly emerging as cost-effective competitors to premium proprietary models. Countries are also expected to build their own domestic AI models, further reducing dependence on high-priced services. Together, these trends could put significant downward pressure on the premium pricing that top AI firms currently command.

Read the full story at Times of India

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