“To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude.”
~ Thomas Jefferson
Written by Bryan Lutz, Editor at Dollarcollapse.com:
The #1 sign for the top in stock AI insanity is the same as the dot com bubble.
It’s a flood of investment while at the same time, tech CEOs dump their shares.
It happened during the “dot com” bust and it’s happening here too.
Here’s the story.
Bloomberg reports:
OpenAI Shows Too Much Money Can Be a Real Thing
“On Monday, OpenAI announced $40 billion in new financing, the largest funding round in history, and one that nearly doubled the artificial intelligence company’s valuation to $300 billion.
While no other startup can match those eyewatering numbers, they probably shouldn’t be a surprise given just how much capital is flooding into the technology:
AI companies raised a record $110 billion in VC funding last year.
That kind of money might seem like a boon for AI innovation. But it may actually become a burden instead.
First, by depriving these companies of invaluable market signals.
Second, by driving them to appeal to investors instead of customers.
The leading AI companies are extraordinarily unprofitable, even by historical “growth at all costs” standards.
OpenAI’s unprecedented ability to raise capital is critical for its continued functioning, as the company reportedly burned $5 billion in 2024.
It’s not alone, as the Information reported that its competitor Anthropic burned $5.6 billion that same year.
By comparison, the largest-ever loss by Amazon, another startup that initially prioritized growth, was $1.4 billion in 2000, and it became consistently profitable three years later.”
There’s no telling the future, OpenAI could end up like Amazon did during the dot com bust.
But similarities to the dot com bubble remain…
For example, the scheer amount of fiat money being thrown at every AI start up in plain sight. AI companies raised $110 Billion in VC funding last year.
Yet, the biggest AI companies have yet to turn a profit.
Now, even those on the back end of the risk ventures are saying, “no thanks.” Hedge funds are pulling their money out of tech stocks.
Fortune reports:
Hedge funds are selling off global tech stocks at fastest pace in 6 months, Goldman Sachs says
“The tech sector, which is already struggling with volatile performance, saw the highest net selling activity on Goldman’s prime brokerage platform. U.S. tech stocks bore the brunt of the selloff, making up about 75% of global net selling…
…U.S. hedge fund exposure to the information technology sector has fallen to 16.4%, the lowest level in five years, per the note, signaling a shift in investor sentiment.”
Those guys are selling shares.
Tech and banking insiders cash in more than $800 million in stock—missing the worst of the market collapse“Zuckerberg started 2025 by extending his stock sales from the previous year. Among the banking and tech CEOs who recently sold shares, he topped the list for the highest value recouped.The Meta CEO sold 431,858 shares for a total of $307.2 million between Feb. 3 and Feb. 21.The February prearranged stock sales came after Zuckerberg sold more than $2.2 billion worth of shares last year, according to a Fortune analysis.”
AMZN, GOOGL: CEOs of Tech Giants Plan Big Sales of Company Stock
“The stock sales by Amazon CEO Andy Jassy and Alphabet CEO Sundar Pichai were disclosed in year-end regulatory filings made with the U.S. Securities and Exchange Commission.
The filings show that Jassy plans to sell over $19 million of AMZN stock. Pichai’s sales are much more dramatic.
Through the Pichai Family Foundation, the Alphabet CEO plans to sell 876,000 class C shares of the company he runs.
Based on the current price of GOOGL stock, Pichai’s sale is valued at about $169 million.
However, Pichai’s stock sale is scheduled to occur between April of this year and April 2026.”
