Market Watch reported that Thiel’s hedge fund ditched all 537,742 Nvidia shares, which accounted for about 40 per cent of its total equity stake. The sale landed days after Japanese billionaire Masayoshi Son bailed on his company’s Nvidia haul despite the chip maker sitting at the centre of the AI frenzy.

Worries that the US market is hopelessly shackled to an AI bubble have piled up in recent months as AI outfits burn cash faster than they can make it.

Investors are worried that big tech is spending far too much cash on fancy data centres to support AI. They have already lobbed more than $350 billion into the kit this year.

Fresh reporting showed AI investment now accounts for about a third of the total stock market’s value. Sam Altman, OpenAI chief executive, stirred the pot further by calling the US government the “insurer of last resort,” hinting taxpayers could be left holding the bag if the AI dream turns into a nightmare.

Fox Business presenter Stuart Varney told viewers that “everybody [was] worried about the air beginning to come out of the AI bubble,” as market-wide slips deepened the gloom.

Goldman Sachs chief executive David Solomon warned it was “likely” that markets would sink by as much as 20 per cent in the next two years.

To be fair, this is not just about AI. The cocaine nose jobs of Wall Street are worried that inflated interest in AI companies has kept the market up, while all the economic problems in the US are being ignored. The share market should be down with all the financial data available, but the fact that it rose is only due to faith in AI.