Hassabis Flags AI Bubble

Benzinga

Demis Hassabis warned that parts of the AI startup market look unsustainable, questioning multibillion-dollar valuations for early-stage firms with little revenue, while arguing established tech companies have stronger fundamentals supporting their AI investments.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Money is flowing into artificial intelligence startups,

00:05even when companies have little more than a pitch deck and no revenue.

00:10Google DeepMind co-founder and CEO Demiz Hassabis questioned how some early stage AI

00:15startups are reaching multi-billion dollar valuations, calling parts of the market likely

00:20unsustainable. Speaking on Google DeepMind, the podcast, Hassabis said some startups have

00:26barely started operations while securing massive funding rounds. He contrasted that trend with

00:31capital flowing into large technology firms that are investing in AI infrastructure and

00:35operations. Hassabis said established companies have real business supporting their valuations.

00:42He repeated his view that AI is overhyped in the short term and underappreciated over longer horizons.

00:49Hassabis said artificial intelligence moved from being widely dismissed to becoming a dominant

00:54focus in business, reflecting a sharp shift in market sentiment. He said that rapid change can

01:00drive valuations higher quickly and is often followed by an overcorrection when expectations

01:05outpace reality. For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended