On June 16, Seth Klarman, founder of the hedge fund Baupost Group and known as the 'Boston Buffett', issued a stern warning regarding the current investment frenzy in artificial intelligence (AI). He noted that market valuations are showing clear signs of a bubble, and his fund is completely avoiding investments in large language model companies such as OpenAI and Anthropic. Klarman has managed Baupost for 44 years, during which he recorded only five years of losses, renowned for his rigorous protection against downside risks. He believes that the current tech market valuations are 'extremely stretched', with investors making overly optimistic assumptions about the distant future to align with new-era thinking. He explicitly stated that Baupost has not participated in any investments in trillion-parameter large language model companies, as these companies continue to burn cash at a high rate and face disaster if their technology falls behind, which does not meet his definition of great enterprises. The market tends to classify companies simply as 'AI winners', 'AI losers', and 'AI unknowns', with funds wildly flowing into the former. Baupost is currently focusing on the 'AI unknowns', which are companies that will not be disrupted by AI or where AI has little impact on their business. Meanwhile, the team is also examining some credit assets perceived by the market as 'AI losers', believing there may be mispricing opportunities among them.