00:00Is AI a bubble? Even the CEO of Google DeepMind is asking that question. Money is pouring into
00:05artificial intelligence startups right now, even when some don't have revenue, traction,
00:10or finished products. On a recent episode of Google DeepMind, the podcast, Demis Hasubis said,
00:16There is a lot of talk, of course, right now about AI bubbles. I think there are parts of the AI
00:21ecosystem that are probably in bubbles, and they're raising at tens of billions of dollars
00:26valuations just out of the gate. His question was simple. Can that really be sustainable? His
00:32answer? My guess is probably not, at least not in general. Hasubis drew a clear line between early
00:38stage startups with little progress and big tech companies investing billions into AI infrastructure
00:43backed by real businesses. He also warned that AI is overhyped in the short term, but still
00:48underappreciated in the long term, calling today's surge an overreaction after years of underreaction.
00:54Other investors have talked about this as well. Oaktree co-founder Howard Marks recently questioned
01:00AI valuations, while Jits and Huang said AI will reshape jobs, but not replace them overnight.
01:05So, is AI a bubble? Maybe in parts of the market, but according to the people building it,
01:11the long-term story is still very real.
Comments