Nordea Analysts Raise Doubts on AI Profitability

Nordea strategists Kirsti Sunde Midttun and Ole Håkon Eek-Nielsen point to mounting headwinds for AI-related equity profits. They highlight three structural pressures: high inference costs, swift depreciation of models, and intensifying competition from free and open-source alternatives.

The analysts argue that these factors could squeeze margins and challenge the sustainability of current AI valuations. The note comes as investor enthusiasm around artificial intelligence is increasingly scrutinized.