“Shark Tank” star and billionaire investor Mark Cuban says the current boom in artificial intelligence does not resemble past stock manias, but he believes a fierce shakeout among model developers is inevitable.
In a new Pioneers of AI interview, the tech entrepreneur says public enthusiasm for the market today is far more contained than during the dot-com era.
“Back then in the 90s, in, you know, early 2000, late 99, like you’d get into a cab back then and people were talking about stocks. That’s all they wanted to talk about… You don’t really see that now. You don’t see everybody, just all your friends or whatever, always talking about it unless they own the Nvidia that they bought way back when. So I don’t think it’s in a traditional stock market bubble.”
Instead, Cuban points to intense competition at the core of the industry as the real source of risk. He says leading companies are spending aggressively to build and operate foundational models, leaving little room for error.
“The bubble is in the competition between all of those models because that could pop just like that with any new technology. All these companies now for two years, and they anticipate for at least another decade, spending every penny they have.”
Cuban says the massive spending among AI giants indicates that the race is early and today’s leader may be tomorrow’s survivor. He notes that the rankings could witness a quick disruption if a firm comes up with a game-changing breakthrough.
“I mean, if that’s not ripe for disruption to come up with better ways, and whoever does that, as opposed to just coming up with an arbitrage: I can save you 1 % there, or 5 % there, kind of like SaaS did when it came in, where it’s just on the margin, as opposed to incredible.
Somebody’s going to come up with some incredible sh*t. If I knew what it was, I’d do it. I don’t. But that’s going to be the game-changer.”
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