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‘Peak AI’ is behind us, says Aswath Damodaran; warns smaller companies could face shakeout

Posted on August 5, 2026
By Financial Express
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1 min read

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‘Peak AI’ is behind us, says Aswath Damodaran; warns smaller companies could face shakeout

NYU professor Aswath Damodaran warns that smaller AI companies may face challenges as the market hits "peak AI," with further consolidation and correction expected, while larger tech firms remain more resilient.