– French startup Mistral AI raised €105 million ($118 million) in a seed round without having a working product, showcasing the feverish excitement around generative AI.
– Some investors worry that the AI investment frenzy is turning into a bubble, with money being invested in companies lacking earnings, innovation, or expertise.
– In the first six months of 2023, venture capitalists invested $15.2 billion into generative AI companies globally, with Microsoft's $10 billion investment in OpenAI being a significant portion of it.
– The release of ChatGPT to the public in November sparked the current buzz around generative AI, leading to increased interest from investors.
– AI-focused exchange-traded funds have seen substantial growth, and tech stocks on the Nasdaq index have risen significantly, resembling the dot-com bubble.
– However, concerns exist as some AI companies are not profitable and are not expected to be in the near future.
– It is challenging for investors to identify long-term winners in the AI space, and there is a risk of overvaluation for some AI-related stocks.
– AI proponents believe that AI will revolutionize various industries, but others caution that the current excitement may not translate into concrete results.
– The rise in AI investment has similarities to the late 1990s tech bubble, and there is a need to distinguish between genuine AI companies and those merely riding the AI hype.
– There is an optimistic view of AI's potential impact in the future, but caution is advised in navigating the AI investment landscape to avoid potential pitfalls.