Emad Mostaque, founder and CEO of Stability AI, spoke at the Bloomberg Technology Summit in San Francisco, California, on June 22, 2023.
Image Source: David Paul Morris | Bloomberg | Getty Images
The CEO of open-source AI company Stability AI predicts that artificial intelligence will become the biggest bubble in history.
During a call with UBS analysts, Stability AI CEO Emad Mostaque commented on the future of artificial intelligence, stating, “I think this will be the biggest bubble of all time.” However, he acknowledged that the technology is still in its early stages and not yet suitable for widespread adoption in industries like banking.
Mostaque referred to it as the “dot AI” bubble, emphasizing that it has not even begun to fully develop.
Stability AI is the company behind Stable Diffusion, a popular generative AI tool alongside OpenAI.
Stable Diffusion enables users to generate realistic images based on text input. It has already gained over a million users and raised over $100 million from investors such as Coatue and Lightspeed Venture Partners.
Mostaque, the co-founder and CEO, has faced allegations of misrepresenting his background, achievements, and partnerships. He addressed these claims one by one in a detailed response on his personal blog.
Generative AI has captured the interest of academics, executives, and even students by its ability to produce human-like language and visual content using vast amounts of data.
AI has been around for a while and is now a common feature in online browsing, social media platforms, and home assistants. In addition to consumer applications, AI is making significant strides in industries such as medicine, transportation, robotics, and finance.
However, a newer form of AI, generative AI, has gained attention recently. This type of AI powers tools like the AI chatbot ChatGPT from OpenAI, as well as Google Bard, Microsoft Bing Chat, and image generators like Dall-E, Stable Diffusion, and Midjourney.
Mostaque believes that the total investment required for AI will likely surpass $1 trillion, considering it as infrastructure for knowledge and more significant than 5G. He also suggested that banks like UBS would need to adopt the technology due to its massive market potential.
However, he emphasized that AI is currently in the early stages of development and not yet ready for large-scale deployment in industries such as financial services. Nonetheless, Mostaque sees its value and potential.
Mostaque warned that companies that fail to leverage AI effectively in their businesses will face consequences in the stock market. He cited Google’s loss of $100 billion in market value in a single day due to inaccurate information provided by its Bard AI chatbot. Google is engaged in fierce competition with Microsoft to develop superior AI tools.
Mostaque concluded by stating that AI will be one of the major investment themes in the coming years.
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