The ascendancy of Artificial Intelligence (AI) has gripped the world, and the gripping saga has a new narrator—Emad Mostaque, CEO of Stability AI. He is known for Stable Diffusion, an AI tool that has taken the tech world by storm. However, his recent comments on the state of AI have set the industry abuzz.
Generative AI is making significant strides, with tools such as OpenAI’s ChatGPT, Google Bard, MidJourney, and of course, Stability AI’s Stable Diffusion leading the charge. It’s estimated that generative AI could contribute a staggering $4.4 trillion per year, and the entire AI industry might be worth up to $15.7 trillion by 2030. But is the hype just blowing a bubble?
Mostaque, the AI guru himself, has a warning. He foresees the AI industry headed towards the biggest bubble in history, even exceeding the infamous dot-com bubble of the late 90s and the more recent crypto-craze. He calls it the ‘Dot AI’ bubble, a phenomenon that he believes is yet to begin.
Artificial Intelligence investments have been on the rise, even outshining the once hot-topic of cryptocurrencies. Notably, Stability AI has attracted over $100 million from backers captivated by Stable Diffusion’s ability to create captivating photos from mere text prompts. As a testament to its success, the tool now boasts over a million users.
And it’s not just Stability AI. Generative AI applications are becoming a staple in our lives, from social media feeds to advanced industries like medicine, transportation, and finance. However, Mostaque asserts that AI still has a considerable journey ahead before large-scale deployment, especially in sensitive sectors like banking.
The AI oracle remains optimistic about AI’s long-term potential, calling for an investment of around $1 trillion. In his view, AI could be “more important than 5G” in democratizing access to knowledge and believes that people will run powerful AI models locally, gradually making human coders a relic of the past.
For those reluctant to embrace AI, Mostaque has a stark warning. Companies not leveraging AI could face severe stock market consequences, as demonstrated by Google’s parent company Alphabet’s $100 billion single-day loss following glitches in its Bard chatbot.
The current AI frenzy is reminiscent of the gold rush seen in crypto, with AI heavyweights like Google, Microsoft, and Elon Musk’s newborn X.AI all aggressively pursuing dominance in generative AI. But caution is warranted in this whirlwind of hype. Mostaque advises companies to approach AI investment prudently, reminding us all to buckle up for a potentially bumpy ride into the ‘Dot AI’ era.
So as we continue to balance on this trillion-dollar tightrope, one thing is clear – the AI revolution has only just begun. So, keep your eyes open and your tech senses tingling because, in this rapidly advancing landscape, only those prepared for the next wave will stay afloat.
