Google DeepMind co-founder and CEO Demis Hassabis believes investors will overreact to the AI boom, as parts of the artificial intelligence ecosystem show bubble-like behavior.
In a new episode of the Google DeepMind Podcast, Hassabis says the current moment is not a binary question of whether AI is or is not in a bubble, but a mixed environment where some segments look overheated.
Hassabis points to early-stage startup fundraising as a clear example, describing valuations that appear detached from the maturity of the underlying businesses.
“One example would be just seed rounds for startups that basically haven’t even gotten going yet, and they’re raising at tens of billions of dollars valuations just out of the gate. It’s sort of interesting to see how that can be sustainable. My guess is probably not, at least not in general.”
He adds that some of the concerns in markets also focus on large technology companies and their valuations, but notes that the picture in large-cap tech is more complex.
“Then the people are worrying about, obviously, there’s the Big Tech valuations and other things. I think there’s a lot of real business underlying that. But it remains to be seen.”
Hassabis says today’s exuberance is a natural pattern that tends to accompany technologies of rare, world-shifting magnitude. The Google DeepMind CEO believes that investors will get shaken out, just like in past tech cycles, once a market collapse takes shape.
“I think maybe for any new, unbelievably transformative and profound technology, of which, of course, AI is probably the most profound, you’re going to get this overcorrection in a way… You’re sort of going to get it. It’s almost an overreaction to the underreaction. So I think that’s natural. I think we saw that with the internet.”
But Hassabis highlights that he still holds the belief that AI is overhyped in the short term but underhyped in the long term.
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