Dial It Back The AI bubble isn’t bursting just yet, but one insightful investor is suspicious it’s overhyped. During an appearance on CNBC’s Squawk Box, billionaire Stanely Druckenmiller — the founder of the Duquesne Family Office hedge fund — revealed that his firm had cut its investment in the AI chipmaker Nvidia earlier this year. As the financier explained, he’d decided to invest in Nvidia after one of his firm’s young partners told him about Nvidia in 2022 and predicted that AI was going to be even bigger than the blockchain. “I didn’t even know how to spell it, [but] I bought it,” Druckenmiller said. “Then a month later, ChatGPT happened. Even an old guy like me could figure out okay, what that meant, so I increased the position substantially.” The rest is history. Last May, Business Insider reported that the Duquesne Family Office had spent a combined $430 million on Nvidia and Microsoft in its big AI bet — but by November, the firm had already begun trimming the fat. While he didn’t go into specifics about this latest Nvidia load-lightening, the investor seemed to suggest that he saw the writing on the wall when the AI chip company’s stock jumped up to $900 earlier in the year. “We did cut that and a lot of other positions in late March,” Druckenmiller said. “We’ve had a hell of a run. A lot of what we recognized has become recognized by the marketplace now.” Break It Down Overall, the billionaire investor…Billionaire Cuts Investment in Nvidia, Says AI May Be Overhyped