Zoho founder and Chief Scientist Sridhar Vembu has weighed in on the current surge in artificial intelligence, describing the market as a “financial bubble.” While acknowledging the long-term potential of AI, Vembu expressed caution over the present valuations and practices in the industry.

“There’s a lot of round-tripping going on in AI right now,” Vembu told CNBC-TV18 , referring to financial maneuvers where one company funds another to inflate revenue numbers. “This current boom makes me very uncomfortable. While AI as a technology has enormous promise, much of today’s investment is driven by hype rather than sustainable business fundamentals.”

Vembu’s concerns are reflected in real-world practices in the AI industry.

For instance, Nvidia’s $100 billion investment in OpenAI has r

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