Lightcone Podcast Are We In An AI Hype Cycle?
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Aug 22, 2024 The hosts dive into whether the current AI excitement mirrors past market bubbles, like dot-com and crypto. They highlight contrasting perspectives on AI between startups and students, showcasing a disconnect in engagement. The growing prominence of open-source AI models is discussed, along with their impact on user preferences. Entrepreneurs are encouraged to build application layer companies without hefty investments, while lessons from the AI hype cycle stress the importance of understanding real-world applications amidst inflated valuations.
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Fear of Hype Cycles
- Fear of AI hype cycles stems from past experiences and high valuations.
- Early-career individuals worry about a potential market crash similar to the dot-com bubble.
Unique Hype Cycle
- This hype cycle is unique because startup and public market trends align with AI.
- All gains in the Magnificent Seven tech companies are AI-driven, increasing fear of unsustainability.
ChatGPT Wrapper Fear Debunked
- ChatGPT wrappers were initially feared to crush startups, but that fear is now gone.
- Open-source models, including Facebook's Llama, have achieved parity with frontier models, which was unexpected.