The artificial intelligence (AI) industry was caught between euphoria and caution. Alphabet (Google), Amazon, Meta and Microsoft raced to invest, spending nearly $200 billion on AI infrastructure. Nvidia, the leader in AI-chip production, reaped gigantic rewards. Sales of such chips are expected to have doubled in 2024, driving its valuation to nearly $3.4 trillion. Demand for AI servers surged: firms such as Dell and HPE reportedly doubled their sales. But cracks began to show. The soaring energy costs of training and running generative AI models raise questions about long-term economic viability.