Despite the hype, there are doubts about the viability of AI models dependent on expensive chips. Recent developments, such as key personnel leaving AI companies and reports of financial pressure, have raised concerns. While there have been real advancements in AI, much of the hype surrounds unrealized developments like artificial general intelligence (AGI). Until there are signs of profitable, human-level intelligence, more people are expected to label the industry as overhyped.
Key takeaways:
- AI expert and NYU professor Gary Marcus predicts that the generative AI bubble could burst within the next 12 months, stating that the entire industry is based on hype.
- The AI industry is spending significantly more than it's making, with $50 billion spent on Nvidia chips in 2023 but only $3 billion made in revenue.
- High-profile AI companies like Inflection AI and Stability AI have seen key personnel departures and financial pressures, raising doubts about the sustainability of their business models.
- Despite the hype and investment in AI, experts like Google's François Chollet stress that current AI models are far from achieving human-level intelligence.