According to Emad Mostaque, the CEO of open-source AI company Stability AI, artificial intelligence (AI) will become the largest bubble in history. Speaking during a recent call with UBS analysts, Mostaque stated that AI is still in its early stages and not yet ready for widespread adoption in industries like banking. Referring to it as the “dot AI” bubble, he emphasized that it has yet to reach its full potential.
Stability AI, known for its popular generative AI tool called Stable Diffusion, enables users to generate lifelike images based on textual inputs. With over a million users and significant investments from Coatue and Lightspeed Venture Partners, the company has achieved notable success. However, Mostaque has faced allegations regarding misleading claims about his background, achievements, and partnerships. He addressed these claims in a comprehensive response on his personal blog.
Generative AI, a more recent development, has captivated the interest of academics, executives, and even students due to its ability to create human-like language and visual content from scratch using vast amounts of data. AI technology has already become ubiquitous in online browsing, social media platforms, and home assistants. Beyond consumer applications, it has found applications in various industries such as medicine, transportation, robotics, science, education, finance, and defense.
Mostaque believes that the total investment required for AI will likely reach $1 trillion, considering its importance as infrastructure for knowledge, surpassing the significance of 5G. He suggests that large financial institutions like UBS will need to embrace AI due to its massive market potential. However, Mostaque acknowledges that AI is currently in its early stages of development and not yet ready for large-scale implementation in sectors such as financial services.
He warns that companies failing to leverage AI appropriately in their operations will face consequences in the stock market. He highlights the case of Google, which experienced a $100 billion loss in market value in a single day when its Bard AI chatbot provided inaccurate information in a promotional video upon release. As Google competes with Microsoft in developing superior AI tools, Mostaque predicts that investing in AI and effectively utilizing it will be a significant theme in the coming years.