Amid Valuation Concerns, Peter Berezin Says AI Tech Will Likely Become A 'Commoditized Product With Commoditized Margins'

2025-11-05 09:00:34

(MENAFN- AsiaNet News)

Amid ongoing concerns about valuation in the artificial intelligence sector, Peter Berezin, Chief Global Strategist and Director of Research at BCA Research, expressed skepticism about the profitability of AI technology.

In a post on X, Berezin stated that AI does not benefit from the network effects that social media does, which could have a negative impact on sector margins.

“The reason that social media is so profitable is because of network effects. People use Instagram because that's what others use. This does not apply to AI. When you use AI you interact with the AI, not with other users of AI,” he said.

Berezin's comments are a follow-up to a previous post he made, where he questioned the demand for AI computation if users had to pay $50 to generate a video using the technology.

“AI will likely become a commoditized product with commoditized margins,” he said in the post.

Peter Berezin's post on X | @PeterBerezinBCA/X

Get updates to this story developing directly on Stocktwits.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN05112025007385015968ID1110299384

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.