AI is the new gold rush. Daily, new AI startups attract investors, resulting in inflated valuations before any real value is delivered.
My question is, how long can major AI companies, especially OpenAI, keep haemorrhaging money without generating profits?
Is there an AI bubble that’s waiting to burst? Many comparisons have been made to the dot-com bust in the 90s, and it’s not hard to see why. If the AI bubble bursts, what happens to solutions that are mostly wrappers around APIs from these major AI companies?
Before you commit to incorporating AI into your business, ask these key questions.
- Who has determined that existing solutions won’t do and that AI is the way to go?
- What is the business going to gain from AI?
- How is the business going to measure the return on AI?
- When will the business walk away from AI?
AI agents have been all the rage, but the reality is that they haven’t delivered results as expected. Here’s what OpenAI co-founder Andrej Karpathy had to say about AI agents when he appeared on the Dwarkesh Podcast.
They’re cognitively lacking, and it’s just not working. It will take about a decade to work through all of those issues.
— Andrej Karpathy
All I can say is, be careful, folks. Do your research and carefully consider your options before diving headlong into AI.
Don’t be mistaken. I am investing in AI and, based on my own experiments, I am observing how it can benefit both my business and my clients. That said, I am not putting all my eggs in the AI basket!
Businesses and individuals with realistic expectations about AI and who aren’t swayed by the hype from companies like OpenAI and Anthropic, and the many “tech bros” spruiking AI, will be the least disappointed with their AI investments.
If you would like to have a realistic discussion about how AI can benefit your business, let’s chat.