Nassim Taleb Warns About Software Bankruptcies, Volatility
Summary
Nassim Taleb, renowned author and scientist, cautions that markets are undervaluing structural risks and overrating AI leaders' longevity. In a Bloomberg interview, he also discusses US tariff policies and the implications of rising US-Iran tensions.
Key Insights
What are 'gray swans' in Nassim Taleb's context?
Gray swans are predictable risks stemming from high volatility and uncertainty in technology firms, which investors are underestimating despite their foreseeability, unlike unpredictable black swans.
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Why does Nassim Taleb warn of software bankruptcies?
Taleb cautions that markets undervalue structural risks in software and tech companies, overrate the longevity of AI leaders like Nvidia, and ignore rising volatility from disruptions such as low-cost AI models from competitors like DeepSeek.