Chance of AI market correction is 'pretty high,' says ex-Meta exec Nick Clegg as he pushes back on superintelligence (www.cnbc.com)

Former Meta VP and ex-U.K. deputy prime minister Nick Clegg told CNBC’s Squawk Box Europe that the odds of an AI market correction are “pretty high,” criticizing what he sees as overheated valuations and frenetic deal‑making across the sector. While he affirmed that AI will endure and transform industries, Clegg warned that a lot of current investment reflects bubble dynamics: private and public valuations outpacing fundamentals, and big hyperscalers pouring “hundreds of billions” into data centers whose returns are not yet guaranteed. Technically, Clegg questioned the limits of the prevailing large language model (LLM) or “probabilistic AI” paradigm and pushed back on expectations for artificial superintelligence (AI that far surpasses human intellect), distinguishing it from artificial general intelligence (human‑level capabilities). His point: LLMs will be impactful but not necessarily “all‑singing, all‑dancing,” and adoption will be uneven and slower across sectors and countries. The implication for AI/ML is twofold—short‑term market volatility and a possible shakeout favoring firms with sound business models and efficient engineering, while core AI research and useful applications continue to mature.