ARK Invest CEO Cathie Wood is taking aim at skeptics who are calling for an AI bubble following deals to the tune of billions of dollars.
In a new interview with Wilfred Frost of the Master Investor Podcast, Wood says the AI story is different from the tech and telecom bubble of the late 1990s.
Wood says that back then, the speculative mania hit, but the technologies were not ready for mass adoption.
“My background is economics. And so when I see capital flooding into a space, my first thought is, okay, there’s going to be overbuilding, and we’re going to have inventory problems. And that was the story of the late 90s, right? Tech and telecom bubble, too much capital chasing too few opportunities too soon, as the technology wasn’t ready. The costs were way too high.”
Wood says that AI has gone through several breakthroughs, making the artificial intelligence boom today different.
“That’s what’s changed here. The technologies are ready. We had deep learning in 2012, transformer architecture in 2017. Costs have collapsed. AI training costs are dropping 75% per year. AI inference costs. So you put in a query to ChatGPT or any of the others, the costs of processing that are dropping 85% to 98% per year.
And so the cost of innovation is collapsing. The cost of developing LLMs, as we just did, that’s the one area that is getting more expensive, but it’s a huge land grab. Who’s going to win? And as I said, it may specialize in some way, shape, or form. Maybe one wins the generalized space.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.