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Tom Siebel, CEO of C3.ai, warns that the AI market, worth billions, is in a bubble like the dot-com era, with companies like OpenAI, valued at $157 billion, getting funding based more on hype than real innovation. In an interview with Fortune, Tom Siebel, the CEO of C3.ai, shared the current state of artificial intelligence (AI), likening it to the dot-com bubble of the late 1990s. Siebel said, “People keep asking me, ‘Is there a bubble?’ Yes, there is, and it’s huge.” Siebel compares AI market to dot-com bubble Siebel, who built his career at Oracle before Silicon Valley, pointed out the parallels between today’s AI market and the dot-com era. Back then many overvalued companies collapsed. “We have this similar thing going on with generative AI that we’ve seen with previous technologies,“ Siebel said. “The market is way, way overvaluing.” According to Siebel, the AI sector is witnessing inflated valuations in both public and private markets. Sandeep Rao, senior researcher at Leverage Shares said noting that “virtually every notable AI company enjoys a fair degree of investor hype.“ OpenAI, is valued at $157 billion after raising $6 billion in October. He was not appreciated by the startups saying, “Nobody would be surprised if that company disappeared next Monday.“ He referenced OpenAI CEO Sam Altman during Thanksgiving in 2023, adding, If Open AI disappeared, it wouldn’t make any difference in the world. Nothing would change and there won’t be any impact. It shows the value and need of the company. Siebel said that OpenAI’s current success is mostly because it was the first to enter the market, not because of any unique technology. “Microsoft would find something else to power Copilot,“ he said. About ten other products available in the market would do it equally as well.“ Paul Marino, chief revenue…

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Filed under: News - @ November 24, 2024 9:27 am