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Emad Mostaki, founder and CEO of Stability AI, speaks during the Bloomberg Technology Summit in San Francisco, California, US, on Thursday, June 22, 2023.
David Paul Morris | bloomberg | Getty Images
Artificial intelligence will be the biggest bubble ever, according to the CEO of open source artificial intelligence company Stability AI.
Speaking with UBS analysts on a call last week, Stability AI CEO Emad Mostaque said of AI, “I think this is going to be the biggest bubble ever.” He added that it is still in its early stages and is not ready for widespread adoption in industries such as banking yet.
“I call it the ‘AI point’ bubble, and it hasn’t started yet,” he said.
Stability AI is the company behind Stable Diffusion, one of the most popular generative AI tools other than OpenAI.
The stable spread allows users to create realistic images by entering text. It has more than 1 million users and has raised over $100 million from investors including Coatue and Lightspeed Venture Partners.
Mostaque, the co-founder and CEO, has been accused of making misleading claims about his background, accomplishments, and partnerships. He contested the allegations one by one in A.J detailed response on his personal blog.
Generative AI has captured the imagination of many academic administrators, CEOs, and even school students, for its ability to produce human-like language and visual content from scratch in response to user prompts using vast amounts of data.
Artificial intelligence has been around for a long time, with the technology now becoming a popular feature of online browsing, social media platforms, and home assistants. Besides consumer applications, the technology is used in medicine, transportation, robotics, science, education, finance, defense, and other industries.
However, a more recent form of AI that has emerged recently is generative AI, which is used in tools such as the popular AI chatbot ChatGPT, from US technology company OpenAI, as well as Google Bard and Microsoft Bing Chat, and image generators such as Dall-E, Stable Spread, and Midjourney.
Mostack said the total amount of investment needed in AI is likely to be $1 trillion “because it’s more important than 5G as knowledge infrastructure,” and suggested banks like UBS should embrace the technology because it’s “a huge market.”
But he added that it is in the “early stages” of development now.
It’s not quite ready “to be deployed broadly in large industries like financial services,” Musaki said, “but we can see the value.”
Mostafa said companies that do not use AI appropriately in their business will be “punished” by the stock market.
And give an example Google, which lost $100 billion in one day after its chatbot Bard AI provided inaccurate information in a promotional video upon its release. Google is fiercely competing with Microsoft To win the race to build superior AI tools.
“I think it’s true. I think there aren’t many investable opportunities here, and you’ll see people go from top chip manufacturers to companies that use this to impact their bottom line and earnings appropriately. And you’ll see the market punish those who don’t use it.”
“This will be one of the biggest investment topics over the next few years,” he added.
He watches: Reid Hoffman of Inflection AI: AI is the new industrial revolution, the ‘cognitive revolution’
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