Stability AI CEO Thinks AI Investment May Be Latest Example of Stock Bubble
The CEO of a successful generative AI company says investors need to buckle up and get ready for the “.AI bubble.” Speaking on a call last week, Stability AI CEO Emad Mostaque said of AI: “I think this will be the biggest bubble of all time.” Mostaque said:
“I call it the ‘dot AI’ bubble, and it hasn’t even started yet,” he said.
Stability AI is the company behind Stable Diffusion, one of the most popular generative AI tools. OpenAI’s ChatGPT ranks at the top.
Mostaque is the CEO and co-founder of Stable Diffusion, which allows users to generate photo-realistic images by inputting text. More than a million people use it. Stability AI has raised over $100 million from investors, including Coatue and Lightspeed Venture Partners.
Dot Com Bubble Revisited
According to Wikipedia the dot-com bubble was building in the ’90s and burst in the year 2000. During the dot-com crash, many online shopping companies failed, such as Pets.com, Webvan, Boo.com, and several communication companies, such as Worldcom, NorthPoint Communications, and Global Crossing.
And these economic bubbles aren’t anything new. Historically, the dot-com boom can be seen as similar to several other technology-inspired crashes of the past, including railroads in the 1840s, automobiles in the early 20th century, radio in the 1920s, television in the 1940s, transistor electronics in the 1950s, computer time-sharing in the 1960s, and home computers and biotechnology in the 1980s.
However, the bubble Mostaque was talking about for an article on cnbc.com has a much bigger price tag. It has the potential to have much broader effects on our lives than most.
One Trillion in Investments
Now that generative AI has got the entire computer universe excited about what it is capable of and what the possible returns on this technology could be, people want to invest immediately.
It’s not that the AI being talked about is brand new. It is not. The tech has been around for a while. The power of these chatbot algorithms is now being used in so many important industries. Medicine, robotics, defense, finance, and more are all seeing the institution of generative AI in their everyday operations. And that can only mean it will continue to grow excitingly.
One Expensive Mistake At Google
Mostaque mentions the AI bubble burst that Google experienced recently. It is estimated Google lost $100 billion in a single day after its Bard AI chatbot gave inaccurate information in a promotional video upon its release.
While it has been brought up in the article that Mostaque has been accused of making misleading statements in the past, it is easy to see that this statement of his is in all likely hood the absolute truth:
“I think this is real. I think that there aren’t many investable opportunities here, and you’ll see people moving from the best chip manufacturers to companies that are using this to impact their bottom line and their top line appropriately. And you will see the market punishing those that don’t use this,” Mostaque said.
“This will be one of the biggest investment themes over the next few years,” he added. We at Seeflection.com could not agree more.
read more at cnbc.com