Kerry experts warn: AI investment frenzy is comparable to the eve of the shale gas bubble!

Jeff Currie of Carlyle Group Inc. stated that the massive investments by large tech companies in the field of artificial intelligence are astonishing, reminiscent of the golden investment period before the 2.6 trillion-dollar market value evaporation caused by the steep drop in prices in the shale industry. In a research report released on Tuesday, this veteran commodity market forecaster wrote that energy and technology are the two main pillars of the economy, and if either is lacking, other critical areas such as finance and healthcare will be "useless." Currie said, "The shale gas boom can be said to be one of the most representative 'growth at all costs' capital expenditure cycles in modern history. At its peak, capital expenditures in the entire energy industry reached 110% to 120% of cash flow. Therefore, if technology spending reaches the level of the energy industry, it should raise many questions." Many tech companies are investing in chips and data centers to enhance computing resources to support the development of artificial intelligence. Currie wrote that the computing power of artificial intelligence can be measured in terms of "how many dollars per hour," just like oil is traded in terms of "how many dollars per barrel." He is confident that the future price of artificial intelligence computing will stabilize around 1 to 2 dollars per hour, similar to the confidence of U.S. shale oil producers in a 100-dollar per barrel oil price, leading to their spending far exceeding cash flow." In the early stages of the shale oil boom, U.S. oil producers could only leave drilling-related debts on their balance sheets, while entering into long-term contracts with special purpose vehicles (SPVs) to bear the burden of additional capital expenditures for pipeline construction. He stated that this financing structure is quite similar to the current artificial intelligence boom. Currie said, "Large tech companies in the field of artificial intelligence seem to be copying the same strategy that the energy industry once used, as these arrangements are clearly identical to the SPV arrangements in today's AI data centers." "We cannot forget about land grabs, or what the oil industry calls 'taking positions,' as this is exactly what is happening with AI's 'land grab'."