The Massachusetts Institute of Technology (MIT), one of the world’s most respected institutions, has released a striking report on the financial benefits of artificial intelligence. This report revealed that technology companies, which have recently been the driving force of the American economy, are facing a significant challenge.

Artificial intelligence companies are losing value

According to the report, only 5 percent of companies investing in artificial intelligence technologies generate significant revenue. However, 95 percent of these companies fail to see any return on their investments.

The data contained in the report has created panic in the markets. On Tuesday, the day the report was published, shares of many AI-related companies, including Nvidia and Palanthir, saw significant declines.

Nvidia lost 3.5 percent of its value in one day, while Palanthir suffered the biggest decline, falling 9 percent. These declines on Wall Street created a similar picture in European and Asian stock markets.

Long-standing rumors of an “AI bubble” were given concrete form by MIT’s report, frightening investors. The decline in technology stocks slowed after Tuesday, but hasn’t completely stopped. Losses for companies like Nvidia and Palanthir could increase further by the end of the week.

For now, this decline isn’t expected to turn into a devastating crisis. However, the MIT report and its aftermath demonstrate that artificial intelligence is now directly linked to a potential crisis for both global markets and the tech world.

OpenAI CEO Sam Altman acknowledged earlier this week that an AI bubble is forming and said some investors could lose money. While Altman argued that these periodic losses will pale in comparison to the massive gains to be made in the long run, those affected by a potential crisis may disagree.