Emad Mostak, Founder and CEO of Stability AI, speaking at the Bloomberg Technology Summit in San Francisco, CA, USA on Thursday, June 22, 2023.
David Paul Morris | Bloomberg | Getty Images
Artificial intelligence will be the biggest bubble of all time, according to the CEO of open-source AI firm Stability AI.
“I think this is going to be the biggest bubble of all time,” StabilityAI CEO Emad Mostak said in a call last week with UBS analysts on artificial intelligence. He added that this is still in a very early stage and not yet ready for large-scale deployment in industries such as banking.
“I call it the ‘dot AI’ bubble, and it hasn’t even started yet,” he says.
Stability AI is the company that develops Stable Diffusion, one of the more popular generative AI tools besides OpenAI.
Stable diffusion allows you to generate photorealistic images by entering text. It has over 1 million users and has raised over $100 million from investors including Coatue and Lightspeed Venture Partners.
Co-founder and CEO Mostak has been accused of making misleading claims about his background, achievements and partnerships. He disputed each of his claims in a detailed response on his personal blog.
Generative AI captures the imagination of many academics, officials, and even school students with its ability to use vast amounts of data to generate human-like language and visual content from scratch in response to user prompts. I’ve been fascinated.
AI has been around for a long time, and today the technology is a common feature of online browsing, social media platforms, and home assistants. Beyond consumer applications, this technology is also used in medical, transportation, robotics, science, education, finance, defense and other industries.
However, a newer form of AI that has recently emerged is generative AI. It is used by American technology company OpenAI’s popular AI chatbot ChatGPT, as well as tools like Google Bard and Microsoft Bing Chat, as well as image generators such as: Dall-E, Stable Diffusion, Mid-Journey.
Mostak said the total investment required for AI is likely to be $1 trillion “because it is more important than 5G as a knowledge infrastructure,” and banks like UBS are a “huge market.” He suggested that technology should be introduced.
But it’s currently in the “early stages” of development, he added.
Mostak said it is “not quite ready” for large-scale deployment in large industries such as financial services, but “we can see the value”.
Mostak said companies that do not properly use AI in their business will be “punished” by the stock market.
He gave the example of Google, which lost $100 billion in a single day because its Bard AI chatbot provided inaccurate information in a promotional video at launch. Google is aggressively competing with Microsoft to win the race to develop great AI tools.
“I think it’s true. I don’t think there’s a lot of investable opportunity here, and people are going from being the best chip makers to companies that are using this to have the right impact on their bottom line and bottom line. You’ll see it move, and you’ll see the market punish those who don’t use it,” Mostak said.
“This will be one of the biggest investment themes in the next few years,” he added.
clock: Inflection AI’s Reid Hoffman: AI is the New Industrial Revolution, the ‘Cognitive Revolution’
