Don't Buy The Dip: Deutsche Says AI Will Split Every Industry Into Adopters And Casualties

This week's AI unwind has been brutal for neoclouds and memory makers. But Deutsche Bank thinks investors are worrying about the wrong distribution. The real risk, it argues, isn't that the AI trade goes down. It's that AI splits every industry into winners and corpses, and that the tools investors use to manage risk stop working when it does.

That's the investing takeaway buried in the Deutsche Bank Research Institute's 20-page "AI boom or doom: what will superintelligence feel like and when will we get there?" (Adrian Cox, with Azeem Azhar of Exponential View). The report sets out the "San Francisco Consensus," a term former Google CEO Eric Schmidt uses for the Silicon Valley belief that scaling laws plus self-improving AI deliver superintelligence by 2030, and then asks what that would mean for portfolios. The answer:

"Change Or Die"