The co-founder of Google DeepMind, Sir Demis Hassabis, has voiced concerns that the surge in funding for artificial intelligence (AI) is leading to exaggerated hype, overshadowing the actual scientific progress in the sector.
What Happened: Hassabis shared his worries that the billions being poured into generative AI startups and products are causing a hype akin to the crypto buzz. This hype, he fears, is clouding the impressive advancements being made in AI and "brings with it a whole attendant bunch of hype and maybe some grifting and some other things that you see in other hyped-up areas, crypto or whatever," reported the Financial Times.
"In a way, AI's not hyped enough but in some senses, it's too hyped. We're talking about all sorts of things that are just not real," he said,
The launch of the ChatGPT chatbot by OpenAI in November 2022 triggered a rush among investors, as startups hustled to create and launch generative AI and attract venture capital. CB Insights, a market analysis firm, reported that investors put $42.5 billion into 2,500 AI startup equity rounds in the previous year.
Investors have also been attracted to the "Magnificent Seven" tech companies, including Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA), which are at the forefront of the AI revolution. However, companies are under scrutiny from regulators for making false AI-related claims.
Despite the hype, Hassabis is confident that AI is one of the most transformative inventions in human history. He pointed to DeepMind's AlphaFold model, launched in 2021, as a key example of how AI can speed up scientific research. AlphaFold has been used to predict the structures of 200 million proteins and is now being used by over 1 million biologists worldwide.
Why It Matters: Previously, concerns about an AI bubble have been raised by several experts. In February, Apollo Global Management's Chief Economist, Torsten Sløk, sounded an alarm on the AI bubble, warning that it's 'Bigger Than The 1990s Tech Bubble'.
In March, Richard Windsor, a seasoned tech stock analyst, highlighted potential indicators of an impending market correction due to the ongoing excitement surrounding AI. However, Ken Griffin, CEO of Citadel, expressed confidence in Nvidia's position in the AI market despite the uncertainties.