Every day lately we hear about various companies and firms based on artificial intelligence receiving investments of hundreds of millions, in addition to talents and employees in the field also receiving high salaries. Touching on it, now OpenAI CEO, Sam Altman, says the artificial intelligence market is now deep in a bubble.
According to him, various investors are overly excited about the artificial intelligence market, leading to high investments so as not to be left behind compared to other investors. This situation is compared to the dot-com bubble in the early 2000s, which led to a sharp market drop, and various investments were burned.
The market is usually said to be in a bubble when an asset is valued higher than usual, and not according to the fundamental calculation. Usually, this situation will lead to the bubble "bursting", and the market returns to its original value, in line with the actual asset value.
Today, various companies focused on artificial intelligence are still in the loss, including OpenAI with ChatGPT which is expected to generate revenue of $20 billion, but is still in the loss phase. This is in contrast to some companies like Google and Facebook who make investments, and the main revenue is still generated through their other advertising products. Some companies also sometimes make bids to buy other products, even if their company value is much lower – for example Perplexity who bid to buy Google Chrome.