Demis Hassabis, co-founder and CEO of Google DeepMind, recently warned in the "Google DeepMind: The Podcast" program that a bubble is forming in the current AI startup environment. He emphasized that many early-stage startups are raising funds at valuations of hundreds of billions of dollars without even starting their businesses, a phenomenon that is not sustainable.
Hassabis mentioned that the funding model for large tech companies should be different. The huge investments these companies make in AI infrastructure are supported by mature business models. He said that although AI may be overvalued in the short term, the market's real impact on AI is still insufficient. He believes that the rise of any major technological wave is accompanied by a rapid shift from skepticism to euphoria, which often leads to excessive valuation fluctuations.
Looking back on his experience founding DeepMind, Hassabis mentioned that almost no one believed in the direction he represented at the time, but now AI has become a central topic in the business world. Although the current investment boom seems extremely hot, he is not confused by it. Recently, some startups have attracted a lot of investment, and many young entrepreneurs have directly gone from campus to start-ups, including cases where they have received substantial funding.
Additionally, Howard Marks from Oaktree Capital Management stated in another program that a large amount of money is flowing into AI startups without performance records, making it necessary to reconsider investment choices. He questioned whether investors are willing to invest in startups without revenue or profits, or choose established companies with stable profits.
Hassabis' remarks provide investors with a clear perspective, reminding them not to ignore rational judgment in the face of the AI trend.
Key Points:
🌐 Hassabis warns that the high valuations of AI startups may form a bubble and are unsustainable.
💼 Investments by large technology companies are supported by mature business models and should be treated differently.
🚀 The market's true impact on AI may be underestimated, and the entrepreneurial boom is still ongoing.
