After this week's global stock market selloff, are fears about AI companies' profits justified?
South Korea's KOSPI plunged more than 7.5% on October 15, 2026, in a 'Black Thursday' selloff driven by a U.S. inflation shock and growing concerns over AI profitability; Wall Street's Nasdaq and S&P 500 rebounded to finish slightly higher.
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Sizzle is great but ROI is what it's all about.
I suspect company returns will be bimodal. For those who reach recursive self-improvement first, profits will be massive and sustainable. Others will struggle. The top "picks and shovels" companies will probably do well either way.