LARRUZFounder | Author & Creator of BYOAI

Will the AI community learn from the mistakes of the .com bubble? 🤔

10 Aug 2023 · 0 min

Watch on YouTube

0:14

Emad Mostak's Stability AI is valued at $4 billion as AI investment mirrors the dot-com bubble. Chinese firms are paying $1.2 million salaries for PhDs. The hosts warn that money is outpacing real opportunity, and most investors will likely lose when the correction comes.

Questions this video answers

August 10, 2023.

$4 billion.

Emad Mostak, founder and CEO of Stability AI.

Some Chinese companies reportedly paying $1.2 million salaries for PhDs.

The AI bubble is bigger than ever and it might just turn into the biggest show we've ever seen. And that's not me saying that. I'm quoting Emad Mostak, the founder and CEO of Stability AI. If you didn't know, they're valued at 4 billion and they have the open source AI image generator. But what did Emad actually mean by this?
The dot com bubble? We've seen all these bubbles happen. You know, you had hundreds of billions into Web3 and then developers got paid millions. Already there are certain Chinese companies paying $1.2 million salaries for PhDs. It's already getting a bit insane. They're in remembrance of that. The amount of money relative to the amount of opportunity within the sector is just completely misaligned.
His words take us the late 90s, the era before the dot com bubble. Money was flowing into Internet startups like a river. But then eventually the bubble burst and the river ran dry. And Matt is pointing out the similarities here. Look at what's happening. Developers pocketing millions left and right. Billion dollar valuations being attached to companies that are mostly based on expectations. So while I'm a huge fan of what's happening right now, and Matt's words remind us to also keep an eye on the economics, one thing is clear. A few players are going to benefit massively, but most investors and companies will end up in trouble as history has a way of repeating itself.