Someone's gonna get burned there, with these CRAZY ...: OpenAI CEO Sam Altman warns startups
CEO
Sam Altman
has issued a warning for the startup community. Altman warned that the present frenzy of investment in artificial intelligence has creased a 'bubble' where 'someone's gonna get burned'. Altman emphasised that the frenzy of investment and sky-high valuations is unsustainable. As reported by Bloomberg, speaking to a group of reports, OpenAI CEO compared the current AI boom to the dot-com bubble of the late 1990s, where, 'smart people' became 'overexcited' by a transformative technology.
'Are we in a phase where investors as a whole are overexcited by AI? In my opinion, yes,' Altman said. 'Is AI the most important thing to happen in a very long time? My opinion is also yes.'
Crazy valuations and irrational behaviour
Altman didn't shy away from describing the current state of market. The OpenAI CEO called some startup valuations 'insane' and also criticized the 'irrational behaviour' of investors who are chasing the next big thing in AI. Altman stressed on the fact that not every company in the AI space is built to last. 'Someone's gonna get burned there,' he said, referring to inflated valuations and unsustainable business models.
Altman also acknowledged that the underlying technology is real and transformative, but cautioned that the hype won't last long and will also not lead to long-term success. He asked the startups and investors to focus more on fundamentals and less on momentum.
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Sam Altman says he is not as 'well-suited' to be CEO of OpenAI
As reported by Bloomberg, Sam Altman also mentioned that OpneAI is of a path of public offering in the future. He also stressed on the fact that he will not be best suited as the CEO of a public company. 'I do think we have to go public someday, probably,' Altman said. But Sam Altman also noted he is not as 'well-suited' to be CEO of a public company.
Along with this, Sam Altman also revealed that OpenAI intends to invest trillions of dollars in compute infrastructure to support its AI ambitions. He emphasised that economists might call the plan 'crazy' or 'reckless,' but insisted the company is forging ahead.
'Let us do our thing,' Altman said, adding that OpenAI is working on a novel financial instrument to fund the massive outlay.
For those unaware, OpenAI has already involved in the $500 billion Stargate initiative alongside SoftBank and Oracle.
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