Trip Chowdhry, Managing Director at Global Equities Research, has issued a stark warning that the global artificial intelligence frenzy is rapidly losing steam. Speaking to NDTV Profit, Chowdhry said the "AI bubble is bursting," and the impact will be felt across the board right from major global tech firms to Indian IT services companies that have positioned themselves as AI‑driven solution providers.
Reacting to questions about the implications of Anthropic's new AI plug‑in for IT services firms, Chowdhry dismissed the focus on individual product launches as missing the larger trend. "The fundamental issue is: does the AI have legs? Are these valuations in AI companies, including IT services firms promoting AI, justified?” he asked. He pointed out that market leaders once seen as AI bellwethers are already feeling the heat. "Look at Oracle. Look at Adobe. Look at Microsoft. They are considered AI leaders. They have all plummeted."
According to him, the core problem stems from companies like OpenAI, Anthropic, Nvidia, and others that, he argues, “don't have a sustainable business model… they have high valuations… speculation is being pulled out.”
Chowdhry stressed that Indian IT companies are collateral damage in this global correction. "Indian IT services companies are now not impacted because of Anthropic. Anthropic is just an act… The AI bubble is bursting, and Indian IT services companies are a victim of this AI bubble burst."
On fundamentals, he said customers no longer accept inflated AI‑tagged pricing. “If you are providing AI services and instead of charging me $100 you charge $150, I'm not going to pay you. First become AI‑efficient and come back at $75."
Despite the short‑term pain, Chowdhry expects markets to stabilise within a quarter once speculation evaporates and fundamentals regain control.
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