Money Life With Chuck Jaffe Daily Podcast

David Trainer, founder and president at New Constructs, says the intensity of competition in the artificial-intelligence business is setting up a path for big winners and losers, and he says that it's nearly time "to see a lot of the companies in the AI race fall out." Trainer cits cash flows turning negative, and says that accounting tricks have hidden much of the problem by allowing companies to keep some debts off of balance sheets. When focusing on what he calls the real debt level of the companies, Trainer says "the cash flow for these companies is highly negative and it cannot be sustained." Further, Trainer notes that with so much money committed to the development of A.I., there is no guarantee that the companies that get in trouble will find a market waiting to take them over once the financial troubles hit. In "The Week That Is," Vijay Marolia, chief investment officer at Regal Point Capital, discusses how last week's software sell-off isn't changing his take on how "Software will eat the world," bu