Emad Mostaque, founder and CEO of Stability AI, speaks during the Bloomberg Technology Summit in San Francisco, California, U.S., Thursday, June 22, 2023.
David Paul Morris | Bloomberg | Getty Images
Artificial intelligence will be the biggest bubble of all time, according to the CEO of open-source artificial intelligence company Stability AI.
Speaking to UBS analysts on a call last week, Stability AI CEO Emad Mostaque said of artificial intelligence: “I think it’s going to be the biggest bubble of all. time”. He added that it is still in its infancy and not yet ready for wide-scale adoption in industries like banking.
“I call it the ‘dot AI’ bubble, and it hasn’t even started yet,” he said.
Stability AI is the company behind Stable Diffusion, one of the other most popular generative AI tools outside of OpenAI.
Stable Diffusion allows users to generate photo-realistic images by entering text. It has over a million users and has raised over $100 million from investors including Coatue and Lightspeed Venture Partners.
Mostaque, its co-founder and CEO, has been accused of making misleading statements about its background, accomplishments and partnerships. He challenged the claims one by one in a detailed answer on his personal blog.
Generative AI has captured the imagination of many academics, executives, and even students, for its ability to produce human language and visual content from scratch in response to user prompts using large amounts of data.
AI has been around for a long time, with the technology now a common feature of online browsing, social media platforms and home assistants. Beyond consumer applications, the technology is used in medicine, transportation, robotics, science, education, finance, defense and other industries.
However, a newer form of AI that has emerged recently is generative AI, which is used in tools such as popular AI chatbot ChatGPT, from US technology company OpenAI, as well as Google Bard and Microsoft Bing Chat, and image generators like Dall-E, Stable Diffusion and Midjourney.
Mostaque said the total investment needed in AI was likely to be $1 trillion “because it is more important than 5G as an infrastructure for knowledge,” and suggested that banks like UBS should embrace the technology because it is a “massive market”.
But, he added, it is currently in the “early stages” of development.
“It’s not quite ready” to be deployed at scale in large industries like financial services, “but we can see the value,” Mostaque said.
Mostaque said companies that don’t use AI appropriately in their operations will be “punished” by the stock market.
He cited the example of GoogleWho lost 100 billion dollars in a single day after its Bard AI chatbot gave inaccurate information in a promotional video when it was released. Google competes aggressively with Microsoft to win in the race to create superior AI tools.
“I think it’s real. I think there aren’t a lot of investment opportunities here, and you’ll see people move from top chip makers to companies that use it to make an impact. appropriate on their bottom line and revenue. And you’ll see the market punish those who don’t use it,” Mostaque said.
“This will be one of the most important investment themes over the next few years,” he added.