AI Industry Shifts from Infrastructure to Profitability

Peng Fu, Chief Economist at Bitfire Group, has made some intriguing observations about the AI industry. According to ChainCatcher, he believes that the infrastructure layer of the AI industry, represented by Nvidia, has reached a mature stage and is displaying characteristics of 'old bull stocks'. This means that investors are likely to focus on more stable and profitable companies rather than those that burn money to build infrastructure.

Fu predicts that over the next 10-18 months, the industry will go through a cyclical transition period. He notes that in the second half of the AI race, the focus is no longer on building infrastructure but on whether AI can achieve stable payments, profits, and proliferation in real industries.

Moreover, Fu points out that market capitalization is following a 'shrinking circle' logic, prioritizing the clearance of peripheral assets, such as speculative ones with low cash flow. He also notes that pure liquidity assets like Bitcoin often absorb valuation pressure ahead of the traditional stock market.