Everyone talks about AI hype, but here's the thing—the biggest valuation disconnect might not be where you think. Public AI stocks have faced serious corrections and scrutiny from the market. The real trouble? Private companies chasing the AI narrative.

Think about it. Thousands of startups are getting funded at astronomical valuations, many with minimal revenue or product-market fit. Venture capital is throwing money at anything with "AI" in the pitch deck. The gap between these private valuations and actual revenue generation is... let's say aggressive.

When you compare it to the crypto space, where at least blockchain projects have on-chain data and transparent metrics, private AI companies operate in the shadows. No daily volume data, no public trading, no real-time market correction mechanism.

This creates a dangerous feedback loop: inflated private valuations attract more capital, which inflates valuations further. Eventually, reality catches up—either through down rounds, acquisitions below expected price tags, or simply companies that never go public because they can't justify their valuation.

For long-term investors, this is worth monitoring. The private market's AI bubble might be the next major correction event that reshapes risk appetite across all asset classes.