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Early indicators suggest that a correction in the AI sector may be on the horizon. Despite NVIDIA's stock price maintaining high levels in 2024, companies like Meta and Microsoft have seen declines as skepticism towards their all-in commitments to AI grows. Emerging startups, such as Babylon Health and Stability AI, have witnessed their billion-dollar valuations evaporate amidst layoffs and insolvency.
Historically, the tech landscape displays a pattern where a select few companies triumph while many others falter. As seen during the dot-com collapse, both highs and lows can coexist within the industry, providing a possible roadmap for the future of AI.