Potential correction in AI investments due to price wars and unreliability, Berkshire Hathaway raises cash.

From Investing.com: 2025-02-24 01:42:00

AI expert Gary Marcus warns that the $500 billion invested in AI may not pay off due to price wars and unreliability, leading to a potential correction. Institutional investors are heavily positioned for growth, with record low cash holdings and high overweight in US equities. On the other hand, Warren Buffett’s Berkshire Hathaway has been selling equity securities, raising cash to the highest level on record. This move could be influenced by the impact of a rising US dollar on the stock market, which historically has led to significant declines.



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