The CEO of Stability AI, Emad Mustak, an open source artificial intelligence company, believes that AI will be the biggest bubble ever in the markets.
Speaking with UBS analysts on a call last week, Mustack said of AI, “I think this is going to be the biggest bubble ever.” He added that it is still in its early stages and is not ready for widespread adoption in industries such as banking yet.
It has been dubbed the “seed of the AI bubble,” and it hasn’t started yet.
Stable AI is the company behind Stable Diffusion, one of the most popular generative AI tools like ChatGPT.
It allows users to create realistic images by entering text. It has more than 1 million users and has raised more than $100 million from investors including Coatue and Lightspeed Venture Partners.
Mostak, the co-founder and CEO, has been accused of making misleading claims about his background, accomplishments and partnerships. He disputed the allegations one by one in a detailed response on his personal blog, according to CNBC, which was seen by Al Arabiya.net.
Generative AI has captured the imagination of many academic administrators, CEOs, and even school students, for its ability to produce human-like language and visual content from scratch in response to user prompts based on massive amounts of data.
Artificial intelligence has been around for a long time, with the technology now becoming a popular feature of online browsing, social media platforms, and home assistants. Besides consumer applications, the technology is used in medicine, transportation, robotics, science, education, finance, defense, and other industries.
However, a more recent form of AI has emerged recently: generative AI, which is used in tools such as the popular AI chat application ChatGPT from US technology company OpenAI, Bard from Google, and image generators such as Dall-E, Stable Diffusion, and Midjourney.
Mostack said the total amount of investment needed in AI is likely to be $1 trillion “because it’s more important than 5G as a knowledge infrastructure,” and suggested banks like UBS should embrace the technology because it’s “a huge market.”
But he added that it is in the “early stages” of development now.
“The technology is not quite ready” to be deployed widely in large industries such as financial services, Mostack said, “but we can see the value.”
He emphasized that companies that do not use artificial intelligence appropriately in their business will be penalized by the stock market.
He cited the example of Google, which lost $100 billion in one day after its chatbot Bard AI provided inaccurate information in a promotional video upon its release.
Mostak believes that there are not many investment opportunities currently, while there will be successful companies in the transition process and the results of using artificial intelligence will appear quickly on their final profits appropriately, while there will be punishment for those who do not use artificial intelligence.
