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- Nobel laureate Paul Romer recently cracked down on the sudden rise and confidence in AI, foreseeing it to be short-lived.
- The economist draws attention to AI prominencies Nvidia, Microsoft, and others, saying that the rise may encounter a significant hurdle moving ahead.
- Will AI Coins face the challenge?
Nobel laureate Paul Romer’s recent comments on AI’s future have served as a wake-up call for the global AI-crypto community.
A Closer Look Into The Report
While recent advancements like OpenAI’s ChatGPT and xAI’s Grok, among many others, have sparked excitement and massive investment in AI infrastructure, Romer highlights the danger of assuming that the current rate of improvement will continue indefinitely. The economist also draws attention to the rise of tech giants Microsoft Corp., Alibaba Group Holding Ltd, and Nvidia Corp, which became multitrillion-dollar companies as AI demand spiked globally.
However, the former World Bank economist stressed, “We’ve benefited from scaling up compute and ingesting a whole lot of data. Scaling up computing is pretty easy. It’s just more machines, and more chips. But what’s going to happen is we’re not going to have enough data.”
This statement has raised eyebrows across the global AI landscape, with investors exercising caution when scoping in on AI coins as well. Should optimism, growth, and investment in AI, a tech said to have infinite capabilities, encounter a hurdle that is itself finite in nature, as Romer stated, the market could witness a bustle.
  
  
    
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AI Coins To Bore The Brunt?
Meanwhile, the market cap of AI and Big Data cryptos fell 0.58% today, May 29, to $40.63 billion. Further, the trading volume saw a 4% decline from yesterday, resting at $2.67 billion.
A recent report by CoinOtag Media spotlighted that despite AI’s recent growth and popularity, meme coins have surpassed investor expectations by offering better ROIs.
  
  
    
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Moreover, in tandem with this, Romer predicts that in two years, people may realize they overestimated the newly emerged tech’s progress, likening the present enthusiasm to a bubble. However, the broader industry sentiments remain optimistic on AI coins’ potential ahead.
Conclusion
Paul Romer’s insights have cast a shadow of doubt over the unbridled optimism surrounding AI and its associated cryptocurrencies. While the market remains buoyant, the cautionary stance taken by Romer suggests that stakeholders should temper their expectations and prepare for potential market corrections. Investors should remain vigilant and consider the finite nature of data and computational resources when evaluating the long-term viability of AI-driven ventures.
  
  
    
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