Mars Finance News, May 30 — Dan Loeb, founder of Third Point and manager of a $24 billion hedge fund, is strongly bullish on AI, stating that the current AI boom is fundamentally different from the internet bubble era. Loeb pointed out that major tech companies announced a combined investment of over $700 billion in AI infrastructure this year, and over $1 trillion next year, but these companies are highly profitable, generating massive cash flows, and most of their expenditures can be supported by their own funds. "If you don’t believe these capital expenditures will yield returns, it’s like thinking they’re just flushing money down the toilet, which is very different from the internet bubble — we shorted the bubble back then and made good profits during those years." Loeb emphasized that he does not see a valuation bubble at present. Loeb cited Anthropic as an example to support his optimistic view: its latest funding valuation has reached $965 billion, up from $380 billion in February, with annualized revenue soaring from $14 billion to $47 billion during the same period, and the adoption rate and practicality of its products are rapidly increasing. The upcoming new model is highly anticipated. "You can convincingly argue that we’ve only just scratched the surface of the AI boom, and enterprise applications are just beginning, so I am in the optimistic camp." As of the end of March, Loeb’s latest holdings in Third Point include Amazon, Alphabet, Meta, and Nvidia.

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FrictionlessFred

· 7h ago

The giants compete with each other over computing power, and in the end, the winner takes all. It's truly hard to say whether there's a bubble in the process.

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Low-PolyEarth

· 7h ago

Dan Loeb's view is quite firm; the 700 billion to 1 trillion in capex is entirely supported by proprietary funds, which is indeed different from the .com era when VC money was burned.

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ColdWalletInTheAutumnBreeze

· 7h ago

Cash flow support vs financing support, this is the fundamental difference, Loeb pointed it out.

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GateUser-af0710ba

· 8h ago

A trillion dollars in AI infrastructure investment— even if only half is efficient, the rest is sunk costs, but he's willing to bet.

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GateUser-470bc925

· 8h ago

Loeb made a killing shorting the internet bubble back then, now he's saying he won't short anymore, the signal is clear enough.

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GlassDomeBaskingInMoonlight

· 8h ago

Third Point has a $24 billion asset management scale. When players at this level are bullish, institutional capital will follow.

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GateUser-52241ed6

· 8h ago

Back then, internet bubble companies weren't profitable; now these giants are cash flow printing machines, and the short-selling logic is completely different.

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Loeb refutes the bubble theory: Investing in AI is not just throwing money down the drain; we have only just scratched the surface of the hype.

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