Image from Quartz
Recently, the CEO of OpenAI, Sam Altman, said the artificial intelligence market is now deep in a bubble. This is quite a surprise. So, what should you know about it?
The AI market is probably not as future-proof as we think it is
According to him, many investors are overly excited about the artificial intelligence market, leading to high investments so as not to be left behind compared to other investors.
Additionally, this situation is compared to the dot-com bubble in the early 2000s, which led to a sharp market crash, and many investments were burned. A market is usually said to be in a bubble when an asset is valued at a higher level than normal, and not according to the underlying calculation.
As a result, this situation will lead to the bubble “bursting” and the market returning to its original level, in line with the actual asset value. These days, many companies focused on artificial intelligence are still losing money, including OpenAI with ChatGPT, which is expected to generate USD20 billion (~RM84.53 billion) in revenue.
What's next?
Unfortunately, it is still losing money. This is in contrast to companies like Google and Facebook that are making investments, and the main revenue is still generated through their other advertising products.
Moreover, some companies also occasionally make bids to buy other products, even though their company value is much lower – for example, Perplexity bid to buy Google Chrome.
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