**AI Bubble Bursts, Investors Reassess Tech Craze**

The recent market crash on August 5 saw a significant dip in the stock prices of major AI players like Nvidia, Microsoft, Alphabet, Amazon, Apple, and Meta. Although these stocks bounced back quickly, the event has made investors more cautious.

- **Big Spending on AI**: Meta plans to invest up to $40 billion in AI R&D in 2024, while Microsoft has already spent $56 billion. Google is projecting $12 billion per quarter.

- **Investor Concerns**: Despite massive investments, returns are yet to be seen. CEOs Sundar Pichai and Mark Zuckerberg stress the importance of preparing for the future.

- **Skepticism Grows**: Critics argue that the AI hype resembles an arms race for a non-existent war. OpenAI, despite its popularity, has modest revenue compared to the capital invested.

- **Legal and Regulatory Issues**: AI technologies face increasing lawsuits and regulatory scrutiny, adding to investor concerns.

- **Nvidia's Position**: While Nvidia remains strong, it faces shipment challenges and criticism from hedge funds.

In summary, the AI bubble's burst has led to a more cautious approach among investors, questioning the immediate viability of AI investments.