Jim Chanos, founder of Chanos & Co., expressed concerns about a potential slowdown in investments in artificial intelligence (AI), comparing the current situation to the dot-com bubble of the late 1990s.
Chanos' Warning on Investment Slowdown
At the [Forbes Iconoclast Summit 2025](https://www.forbes.com/iconoclastsummit2025/jim-chanos-warns-ai-sector-risk), Chanos expressed concern that over-investment in AI infrastructure could lead to significant reductions in spending if economic conditions change, drawing parallels to networking companies like Cisco.
Critique of Corporate Bitcoin Holdings
Chanos also characterized corporate investments in Bitcoin as 'ridiculous,' reflecting his historical skepticism towards speculative investments. While he has been vocal about these risks, no recent statements directly from him on the topic have been found.
Possible Market Consequences
Many market analysts note that a reduction in AI funding could lead to significant changes in both corporate earnings and overall economic growth. According to Chanos: 'A potential slowdown in demand from corporate customers for AI-related goods and services could lead to a contraction in both corporate earnings and economic growth.'
In Chanos' view, investors may face important changes in corporate strategies that will affect the broader economic context. His remarks underscore the ongoing tension between perceived innovation and financial prudence.
