Turns out everyone thinks there’s an AI bubble.
According to a CNBC report, top tech executives are worried that the AI bubble will ruin their businesses.
Like other infamous bubbles – the dot-com bubble, the cryptocurrency bubble, and the housing bubble of the 2000s – an AI bubble could cause massive disruption to the broader economy. A bubble occurs when the price of something rises above its intrinsic value, usually because investors become overly excited. and investors have been Very Excited about AI.
A recent report from Stanford University estimates that AI investments in the US will reach $109.1 billion in 2024. This is 12 times more than China’s investment and 24 times more than UK’s investment.
mashable light speed
CNBC reported that Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, investor Michael Burry and Pixart CEO Hovhannes Avoyan are all concerned about a potential AI bubble. In fact, some AI leaders are also nervous.
“I think valuations are quite inflated here and there and I think there are signs of a bubble on the horizon,” Jarek Kutilowski, CEO of German AI firm DeepL, told CNBC.
This isn’t the first time we’ve heard about a potential AI bubble. In August, OpenAI’s Sam Altman spoke to a small group of journalists, including The Verge’s Alex Heath, during a dinner in San Francisco about his fears of an AI bubble.
“When bubbles pop, smart people get overexcited about the truth,” Altman told reporters. “If you look at most of the bubbles in history, like the tech bubble, there was a real thing. The technology was really important. The Internet was a really big deal. People were super excited. Are we in a phase where investors are super excited about AI overall? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes.”
Subject
artificial intelligence
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