Venture capitalist and supporter of President Donald Trump Peter Thiel became the latest billionaire to sell off all of his stock in the tech company Nvidia, according to new reporting Monday, sparking panic that a market “bubble” centered around artificial intelligence may burst at any moment and send the market into a downward spiral.
“Uh oh,” wrote X user “Tea M.” in response to news of Thiel’s latest stock sale. “Fun times.”
According to Market Watch, Thiel’s hedge fund sold all 537,742 of the shares it held in Nvidia, around 40% of the fund’s entire equity holdings. This comes just a week after Japanese billionaire Masayoshi Son – the single-richest man in Japan – sold off all of his company’s shares in Nvidia, which has been central to the AI boom.
Fears that the U.S. market could be entirely dependent on an AI bubble have increased in recent months as AI companies have struggled to chart a path towards profitability, while at the same time investing more than $350 billion in the technology this year alone.
Those fears only increased after reporting revealed that AI investment now makes up about a third of the value of the entire stock market, further exacerbated by comments from Sam Altman – CEO of OpenAI – about the U.S. government being the “insurer of last resort,” suggesting that taxpayers may be forced to bail AI companies out should they financially collapse.
Fox Business’ Stuart Varney recently discussed the growing fears that the U.S. economy could be on the verge of collapse, warning that continued market slips had “everybody worried about the air beginning to come out of the AI bubble.” Global investors have shared this sentiment, with Goldman Sachs CEO David Solomon warning recently that he believed it was “likely” that markets fall by as much as 20% within the next two years.
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