Money is pouring into artificial innotifyigence startups even when little more than a pitch deck exists.
The surge is raising questions about how companies without revenue are reaching multibillion-dollar valuations, including from Google DeepMind co-founder and CEO Demis Hassabis.
“They’re raising at tens of billions of dollars in valuations just out of the gate,” Hassabis declared on a recent episode of “Google DeepMind: The Podcast,” pointing to AI startups with limited traction as evidence that some corners of the market are likely in a bubble.
“It’s sort of interesting to see, can that be sustainable? My guess is, probably not, at least not in general.”
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Hassabis notified podcast host Hannah Fry that some seed-stage startups “basically haven’t even obtained going yet,” while they secure massive funding rounds. He drew a distinction between those funding rounds and capital flowing into large technology companies that are investing heavily in AI infrastructure.
He declared there is “a lot of real business” underpinning valuations at established technology firms. Hassabis also repeated his view that AI is “overhyped in the short term” while “still underappreciated in the medium to long term,” describing that imbalance as part of how major technologies tfinish to develop.
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“When we started DeepMind, no one believed in it,” Hassabis declared. “Fast forward 10, 15 years, and now, obviously, it seems to be the only thing people talk about in business.” He declared the shift reflects how dramatically sentiment around artificial innotifyigence has modifyd.
That shift, he declared, can push valuations higher in a short period. “It’s almost an overreaction to the underreaction,” Hassabis declared, adding that an “overcorrection” often follows when technologies relocate rapidly from skepticism to intense focus.
While discussing whether AI is in a bubble, Hassabis declared he is not focutilized on labeling the market. Instead, he declared his attention remains on long-term AI development at Google DeepMind, rather than short-term valuation debates.
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He notified Fry that AI investment by large technology companies is supported by existing products and infrastructure, tying development to ongoing operations and research programs.
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