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華爾街日報AI Bubble Fears Grow, But Investors Say Valuations Are Powering Next Wave Of Innovation
Despite warnings of inflated valuations, leading AI investors argue that the current surge in artificial intelligence is sparking unprecedented innovation and attracting top talent from tech giants.
AI Bubble Seen As Catalyst For Innovation, Talent Migration
At the Fortune Brainstorm AI conference, Steve Jang of Kindred Ventures and Cathy Gao of Sapphire Ventures discussed whether the AI market is in a bubble, reported Fortune.
"I think it is a bubble, but bubbles are good for innovation," Jang said, noting that market excitement is essential to draw top engineers and secure funding for ambitious projects.
He pointed to engineers leaving companies like Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG), Google, Meta Platforms Inc. (NASDAQ:META), and Uber Technologies, Inc. (NASDAQ:UBER) to launch startups as a "good signal" for the industry.
Enterprise AI, Infrastructure Highlighted As Keys To Growth
Gao agreed that some valuations exceed fundamentals but emphasized that AI growth curves "far outstrip the growth curves of companies we've ever seen before."
She said the true potential of AI companies is still unclear, making broad predictions difficult.
Jang said Kindred Ventures focuses on AI infrastructure—chips, GPUs, and cloud systems where margins remain strong.
Gao stressed enterprise applications, warning that "AI for X" solutions are vulnerable and that embedding AI into complex workflows offers a sustainable competitive advantage.
The conversation also addressed robotics. Jang cautioned that many startups are building on early-stage models and could face significant setbacks.
"A whole bunch of robotics startups … are going to have a lot of heartbreak when the models improve," he said.
Gao added that enterprise adoption will face challenges around trust and visibility even as AI models advance.
AI Bubble Fears Grow As Experts Flag Overvalued Startups
Last week, Investor Michael Burry and Google DeepMind CEO Demis Hassabis warned about overvaluation risks in the AI sector.
Burry said the AI bubble's timing was unpredictable, criticized Nvidia Corp. (NASDAQ:NVDA) for fueling hype, and highlighted overspending on data centers without real demand.
Hassabis noted that some AI startups raised tens of billions before launching products, questioning the sustainability of such valuations.
He contrasted these companies with established tech giants like Google and said AI was "overhyped in the short term" but underappreciated in the medium to long term, reflecting on how hype often inflates valuations rapidly.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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