Trillions are being ‘wasted’ on the AI boom, Arthur Hayes says. He’s betting on what comes next
Former BitMEX CEO Arthur Hayes says the AI infrastructure boom is being overbuilt and is betting an eventual crash and bailout will send crypto higher.
TL;DR
- Former BitMEX CEO Arthur Hayes believes the current AI boom involves wasting trillions of dollars on building data centers.
- Hayes predicts this massive buildout will result in overcapacity, leading to a crash similar to past technological rollouts.
- He expects cryptocurrencies, particularly Bitcoin, to benefit from bailouts following the AI infrastructure downturn.
- Hayes is launching Flop, a payment project for AI agents, to leverage the expected availability of cheap computing power.
- He notes that end-users like SpaceX and OpenAI are currently not profitable, raising questions about the sustainability of the AI demand.
- Hayes advises patience for investors looking to capitalize on the eventual crypto rally driven by bailouts.