Chanos Warns of AI Pullback, ‘Absurd’ Bitcoin Treasury Companies

Enthusiasm for all things artificial intelligence has helped propel stocks to another all-time high, but the AI ecosystem is getting close to a potential pullback, warned legendary short-seller Jim Chanos.

The founder of Chanos & Co. likened the dominance of AI companies to networking giants such as Cisco and Lucent which characterized the market of the 1990s and saw their stocks soar as companies upgraded their systems to handle the new internet age. At a live recording of the Odd Lots podcast in New York, he cautioned that a potential pullback in demand from corporate customers for AI-related goods and services could spark a contraction in both corporate earnings and economic growth.