Abandoning Crypto: When Artificial Intelligence Becomes the Best Option for Investors

Since the beginning of 2025, I have radically changed my investment strategy: instead of relying on crypto market fluctuations and digital currencies, I shifted toward the artificial intelligence sector and its giant companies. But this shift wasn’t due to blind faith in the future; it came after cautious observations of the industry’s actual state.

The internal conflict within the AI industry: more than just personal disagreements

The moment Dario Amodei from Anthropic refused to shake hands with Sam Altman from OpenAI wasn’t just an isolated incident. To me, it was a clear sign of a deep division within the industry. Not just among individuals, but between two completely different philosophies: those who prioritize safety and caution, and those rushing forward without considering risks.

This intellectual and commercial conflict has clearly reflected in the migration of talent between companies and the decline in market shares. When you see a talent leaving one company for another, it’s not just a job change; it indicates deeper issues related to vision and trust. In this context, genuine market confidence has noticeably started to decline.

Overhyped valuations: the difference between promises and reality

From a purely financial perspective, I find the valuation of OpenAI at $850 billion deeply concerning. This huge number seems based more on long-term promises than on current, tangible financial facts.

The company reports massive annual losses, and the path to true profitability could take many years. Financial history has taught us a harsh lesson: companies valued at exaggerated figures far from their financial reality can cause investors who believed the stories to suffer significant losses later on.

The endless money cycle: the suspicious loop

What worries me most is what I call the “circular money cycle,” which appears very suspicious:

• Nvidia invests huge sums in OpenAI
• OpenAI buys GPUs worth enormous amounts from Nvidia
• OpenAI then invests in CoreWeave (a GPU rental platform)
• CoreWeave rents GPUs back to OpenAI at high prices

This closed loop resembles a complex financial game where money circulates repeatedly among the same parties. Is this a sustainable business model, or are we witnessing artificial inflation of valuations and prices?

The moment of truth: a technological breakthrough or a harsh market correction?

I believe we are now at a pivotal point in the AI industry. Only two scenarios lie ahead:

Scenario One: A genuine technological breakthrough justifies these high valuations and massive investments, and these companies start generating real profits matching their valuations.

Scenario Two: The anticipated breakthrough doesn’t happen, and the market undergoes a severe correction, bringing prices and valuations closer to the companies’ actual worth.

Honestly, I lean more toward the second scenario. History teaches us that huge valuation bubbles often burst. But only time will tell who was ultimately right.