The CEO of a famous AI company claims that artificial intelligence will be the biggest bubble ever

The CEO of a famous AI company claims that artificial intelligence will be the biggest bubble ever

AI (Artificial Intelligence) is the new buzzword in the stock market, and it has been a strong contributor to the Nasdaq after it is up 35 percent so far in 2023.

At Finansavisen on Monday, technology analyst Petter Kongslie of SpareBank1 Markets warned that the focus on artificial intelligence has led many companies to artificially raise prices.

– The focus of AI has dragged some companies to grow with it, companies that don’t necessarily have the same impact as big companies, for example Nvidia. He says this creates some room for downside.

– The biggest bubble of all time

Amnesty International’s director of stability, Emad Mostaki, also finds reason to warn, and beats the big drum.

– He said I think this will be the biggest bubble of all time CNBC On a conference call with UBS analysts on Thursday last week.

Stable AI is the reason behind Stable Diffusion, which allows users to create realistic images by entering text, and with over 100 million users it has become one of the most popular so-called generative AI tools alongside OpenAI. According to the website, the company has raised more than $100 million from investors such as Kotoy and Lightspeed Venture Partners.

– at an early stage

Generative AI has astounded everyone from academics and business leaders to students with its ability to produce human-like language and visual content “from scratch” in response to user requests using large amounts of data.

– Artificial intelligence is at an early stage of development right now, and is not quite ready for large-scale implementation in large industries such as financial services. (…) I call it the “AI point” bubble, and it hasn’t even started, continued Mustafa, who has previously been accused of making misleading claims about his background, achievements, and collaborators.

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According to CNBC, the director of Stability AI has dismissed all claims in a detailed response on his personal blog.

More important than 5G

Along with the “bubble warning,” Moustack assures UBS analysts that he sees value in artificial intelligence, calling it “one of the biggest investment topics of the next few years.”

The total investment need in AI is likely to be US$1000 billion because it is more important than 5G as knowledge infrastructure. (…]The market is huge, and companies that do not properly use artificial intelligence in their business will be punished by the stock market, he said in the conference call, according to the site.

For example, Mostaque, according to CNBC, singled out Google for losing $100 billion in market value in a single day after its “chatbot” Bard AI surfaced with inaccurate information in a promotional video tied to its February launch.

– I think it’s true. I think there aren’t many investment opportunities here, and you’ll see people move from semiconductor manufacturers to companies that use this to influence the bottom and top lines in an appropriate way.”

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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