Apparently everyone thinks there’s an AI bubble happening.
CNBC reports that top executives at tech companies are worried that the AI bubble will ruin their businesses.
Like other infamous bubbles (the dot-com bubble, the crypto bubble, the housing bubble of the 2000s), the AI bubble has the potential to cause major disruption to the entire economy. Bubbles occur when the price of something rises above its actual value, usually because investors get too excited. And the investors very I’m excited about AI.
A recent report from Stanford University estimates that AI investment in the United States will reach $109.1 billion in 2024. This is 12 times more than China’s investment and 24 times more than UK investment.
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CNBC reports that Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, investor Michael Burry, and Pixart CEO Hovhannes Avoyan are all concerned about the possibility of an AI bubble. In fact, even some AI leaders are becoming anxious.
“I think valuations are pretty overstated here and there. I think we’re on the verge of a bubble,” Jarek Kutilovski, CEO of German AI company DeepL, told CNBC.
This isn’t the first time we’ve heard about the possibility of an AI bubble. In August, OpenAI’s Sam Altman spoke about his AI bubble fears to a small group of reporters, including The Verge’s Alex Heath, over dinner in San Francisco.
“When you have a bubble, smart people get overexcited about the kernel of truth,” Altman told reporters. “If you look at most of the bubbles in history, like the tech bubble, there were actually bubbles. Technology was really important. The internet was a really big thing. People got too excited. Are we at a stage where investors as a whole get too excited about AI? My opinion is yes. Is AI the most important thing that will happen in a very long time? My opinion is also yes.”
Topics
artificial intelligence
