Sam Altman, CEO of OpenAI, believes that there is now too much investor enthusiasm surrounding artificial intelligence in Silicon Valley.
Altman has recently been around the world to meet with politicians, developers, and users of artificial intelligence. He has made appearances in Europe, Israel, and now India, where he most recently participated in an event organized by the Indian publication The Economic Times.
Altman was blunt when discussing the investor AI craze.
According to Altman, it’s been grossly overhyped in the short term. Right now, crazy events are happening in Silicon Valley.
The investment interest, he continued, is “still underhyped in the long-term.” This is due to the fact that, if technology develops as quickly as he and others anticipate, it will be impossible to predict how useful it will be.
Nobody knows how to value or think about that, but whatever they are thinking is probably too low, according to Altman.
Without a doubt, venture capitalists and other investors are intently monitoring how to finance the upcoming AI breakthrough. In a recent round of investment, OpenAI raised $495 million through the sale of shares, valuing the company at between $27 to $29 billion.
Every week, VC companies of all sizes, including Andreessen Horowitz, which is leading fundraises in startups like Pinecone and Character.AI, announcing new rounds of funding for AI startups.AI and coleading investments in companies including ElevenLabs, Hippocratic AI, and Coactive, among others. Sequoia is also heavily involved in investing in artificial intelligence, supporting businesses like Harvey and Langchain, and making an unusual appeal to attract startup investors seeking capital.
According data, funding for generative AI businesses alone increased by 580% over the last three years. These businesses received roughly $1.7 billion in capital from investors during the first quarter of this year, compared to just $250 million during the same period in 2020.
Paul Graham, co-founder of Y Combinator, believes that public stock market investors are missing out because there are so little options available there due of the high volume of AI startup fundraising activities.
In a recent tweet, Graham stated that the majority of smart investments are still hidden.
Altman stated that the business has not yet begun work on training the GPT-5 iteration of ChatGPT, which will be trained by OpenAI. That was in reaction to accusations that the business had begun work on the update in April but stopped after members of the tech community, including Elon Musk and AI experts, signed an open letter urging a halt to the training of AI systems more potent than GPT-4.
There is no clear date for when OpenAI will release the next edition of the chatbot, according to Altman, who noted that training these models requires a lot of time, labour, and resources. They still have a lot of work to do before they are prepared to begin using that model. They are developing the fresh concepts they believe are required, but they are undoubtedly far from starting.
