New Delhi, Jan. 4 -- On Christmas Eve, Nvidia announced a deal to license technology, acquire assets, and hire key team members from AI chip startup Groq. Valued at $20 billion, the deal is one of the largest in the sector and has reignited concerns about a possible AI investment bubble and 'circular financing' by companies in the space.

However, there are positive signs as well. Business adoption of AI is accelerating, early benefits are being reported, and models continue to improve. Governments worldwide are increasing their focus on the sector, providing incentives and creating regulations. How the industry adapts to these tightening rules will be critical in the coming years.

Companies have committed billions to AI infrastructure t...