The previous week witnessed substantial turbulence in the AI sector of the U.S. stock market, fueled by widespread market skepticism. Stocks closely tied to AI, such as Oracle, found themselves under immense pressure. This pressure stemmed from concerns regarding whether the colossal investments in the field would yield profitable returns, as well as ongoing debates about their financing models. Consequently, the market discourse surrounding the question, "Has the AI bubble burst?" intensified significantly.

On December 17, Oracle's stock price took a sharp nosedive, plummeting by over 5%. This decline brought it perilously close to a 50% drop from its all-time high recorded in September. This development thrust the debate over the AI bubble into the spotlight. Prior to this, Oracle's stock price had already been on a downward trajectory. This decline was attributed to earnings that fell short of market expectations, mounting debt pressures, and ambiguous profit prospects for its AI business ventures.

The market is now rife with concerns that, amid the current AI investment frenzy, the substantial investments made by tech behemoths have yet to materialize into stable cash flows. Moreover, the path to commercializing AI technologies remains shrouded in uncertainty, further exacerbating these apprehensions.