Google DeepMind chief executive Demis Hassabis says the AI industry is becoming too large, too fast, and bubble-like signals are already emerging.
In a new interview with the Financial Times, Hassabis says the industry is now “very big” amid explosive consumer and enterprise demand for AI tools and models.
He notes that the level of demand he’s seeing makes it difficult to argue that AI as a whole is in a speculative bubble, especially given the scale of its expected impact.
“From our point of view, we’re seeing more usage than ever, incredible demand for our models and the AI features. We can barely satisfy that. There aren’t enough chips to go around. And so I think from that perspective, and also overall, it’s going to be the most transformative technology probably ever invented. So I think from that perspective, there can’t really be a bubble.”
At the same time, he says certain corners of the AI ecosystem appear increasingly disconnected from fundamentals, particularly early-stage funding.
“But on the other hand, I think there are parts of the industry that do look bubble-like. For example, seed rounds, multi-billion-dollar seed rounds in new startups that don’t have a product or technology or anything yet does seem a little bit unsustainable. So there may be some corrections in some parts of the market.”
While bubble signs are surfacing, Hassabis says Google is not particularly worried about a market shakeout.
“I don’t worry too much about that from our day-to-day. I focus on our technology and delivering that. And my job as head of Google DeepMind is to make sure we’re well-positioned no matter what happens. If the bubble bursts, we will be fine. We’ve got an amazing business that we can add AI features to and get more productivity out of. And also, if the bull case continues, then we’ve also got these amazing AI-first, AI-native products like the Gemini app.”
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.