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Is the downfall of AI companies imminent? Specialists think we are at the height of a boom, on the verge of collapse
Many AI businesses, even though they are just starting, are asking for high evaluations, and backers, aiming to invest in the next ChatGPT and OpenAI, are pouring endless money into them. However, experts in the industry are cautioning that this, AI is just another economic bubble, now on the brink of bursting.
Investors are investing heavily in the AI industry, however, experts suggest that the majority of these AI firms are overpriced. They are growing more cautious about a possible "AI bubble", as highlighted in a Futurism report.
The research note by tech stock analyst Richard Windsor, emphasized by CNBC, distinctly illustrates the dangers linked to the AI craze. He compares the scenario to a round of musical chairs, where money is poured into the AI industry without proper consideration of company basics. This may result in investors being left with limited choices when the hype dies down.
The latest happenings have only amplified worries. It is rumored that Cohere, a startup focusing on generative AI, is in advanced talks for a deal that would value the company at an astonishing $5 billion. Microsoft's unusual $13 billion gamble on OpenAI, along with its wave of hires from AI startup Inflection AI, have surprised investors and led to queries regarding Microsoft's plan.
Windsor makes comparisons between the present excitement over AI and previous speculative frenzies, like the internet surge in 1999 and the fervor for self-driving cars in 2017. Even with concerns regarding potential profits, investors persist in investing huge amounts of money into AI companies.
Kai Wu, the creator of Sparkline Capital, cautions about a significant surge in AI investment. He notes that some are seeking involvement regardless of the price, while others anticipate a market crash.
Emad Mostaque, the former CEO of Stability AI, forecasts that the AI boom could outshine all previous ones, referring to it as the "dot AI" boom.
DoubleLine Capital's CEO, Jeffrey Gundlach, compares the ongoing obsession with AI to the dot-com bubble. Meanwhile, John Hussman from Hussman Investment Trust cautions about excessive speculation.
The research note from Windsor emphasizes the profit-making abilities of Nvidia, a chip manufacturer, during the surge in AI technology. It also points out possible dangers for those who offer generative AI services.
As the excitement persists, Windsor anticipates a merging trend in the sector, where bigger corporations lacking internal AI abilities will probably take over startups.
The atypical Microsoft agreement and skyrocketing startup valuations have sparked apprehension among specialists, who are skeptical about the sector's capacity to turn buzz into earnings.
Rumman Chowdhury, an expert in AI ethics, warned that the continued struggles with precision in AI chatbots are fueling skepticism regarding the longevity of the industry.
The parallels being drawn between previous market bubbles and the current excitement about AI raise an inevitable question: Will AI's buzz end the same way or will it surprise us all? The answer will only be revealed in time.
(Incorporating information from various sources)
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Microsoft is working on making AI 'future-proof' by developing a $100 billion supercomputer named 'Stargate' exclusively for OpenAI.
OpenAI introduces a new AI bot that can mimic any voice after analyzing a 15-second clip, reminiscent of a real-life Black Mirror scenario.
Microsoft and OpenAI have teamed up for the $100 billion Stargate AI supercomputer initiative.
There will be an increased effort in collaboration between Japan and the US in the fields of AI and semiconductors.
Microsoft is in the process of creating a 'future-proof' AI, with its $100 billion supercomputer named 'Stargate' that is designed solely for OpenAI.
OpenAI has revealed a new voice duplicating AI bot that can replicate any voice after listening to a 15-second clip, akin to a scenario straight out of Black Mirror.
In a joint initiative, Microsoft and OpenAI are working on the $100 billion Stargate AI supercomputer project.
Japan and the US are set to enhance their partnership in AI and semiconductor technology.
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