Wall Street’s Valuation Dean Warns of AI-Driven Market Delusion
NYU finance professor Aswath Damodaran cautions that AI hype has inflated valuations—such as OpenAI’s $730 billion and Anthropic’s $380 billion—creating a “market delusion.” He argues that overconfidence among founders, VCs, and investors may lead to thinner margins and warns of underappreciated transition risks.