Investment Bubble
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Tech investor Orlando Bravo says ‘valuations in AI are in a bubble’
Thoma Bravo’s Orlando Bravo warns of an AI valuation bubble, drawing parallels to the dot-com era. He questions high valuations relative to current revenue, citing examples like OpenAI and Palantir. While acknowledging AI’s potential, Bravo emphasizes realistic cash flow projections. He notes the presence of established companies with strong balance sheets differentiates this era from the dot-com bubble, but their strategic investments may create market distortions. He advises investors to exercise caution and due diligence.
