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CNBC has reported that billionaire and renowned investor Stanley Druckenmiller has slightly backed out of his bet on Nvidia chip making giant and radically decreased his stake in the company.
Druckenmiller said during his visit with CNBC’s “Squawk Box” show that he expects artificial intelligence to be overdone in the short term as an investment tool.
Druckenmiller takes break from Nvidia and AI
The billionaire admitted that he reduced his Nvidia stake in March because he needs a break.
In particular, the investor decreased his Nvidia stake after the share price jumped from $150 to $900. Druckenmiller stated that he does not plan to act like Warren Buffett and “own things for 10 or 20 years.”
Over the past few years, Nvidia has been focused on large artificial intelligence models created by its graphics processors for servers. In 2023, Nvidia’s stock did very well and was one of the best in the market by performance; it skyrocketed a staggering 238%. This year already, Nvidia shares rallied by 66%.
Initially, Druckenmiller noticed Nvidia, when he was introduced to by a partner at Duquesne Family Office, who thought that AI was going to beat blockchain in the long run.
A month after the billionaire bought a stake in it, OpenAI released ChatGPT for public use and then he increased his position at Nvidia. Still, even though he reckons that AI may be overhyped in the short run, Druckenmiller remains bullish on it in the long term.
“So AI might be a little overhyped now, but underhyped long term,” he said, likening AI to the internet in its earliest stages. He expects a big payoff to happen four or five years from now.
Yuri MolchanElon Musk issues crucial AI warning
As reported by U.Today earlier, tech magnate Elon Musk, founder of the xAI start-up that produce the Grok AI chatbot, stated the other day during a public talk that he believes it is vitally important to train AI in the right way so it can be human-friendly and will foster cooperation with mankind in the future.
To do this, Musk believes, it is necessary to train AI to be truth-seeking and as curious as possible. Otherwise it may become hostile toward humans.
Denys Serhiichuk
