The rapid expansion of artificial intelligence startups is raising concerns about the financial sustainability of the sector, as many companies rely on speculative funding rather than proven revenue models. Investors are pouring billions into AI ventures, often betting on long-term potential rather than immediate profitability, creating a high-risk environment. Critics warn that this speculative bubble could lead to a sharp correction if market expectations fail to materialize. The focus now shifts to whether these companies can transition from hype to viable business operations.
Like every bubble, the important point is how the AI boom is being financed
