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20VC: Why the AI Bubble Will Be Bigger Than The Dot Com Bubble, Why AI Will Have a Bigger Impact Than COVID, Why No Models Used Today Will Be Used in a Year, Why All Models are Biased and How AI Kills Traditional Media with Emad Mostaque, Founder & CEO @

May 17, 2023

Emad Mostaque, Co-founder and CEO of Stability AI, discusses his journey from hedge funds to AI innovation, inspired by his son's autism diagnosis. He predicts that the AI bubble will eclipse the dot-com era, emphasizing the current models' obsolescence and biases. Emad argues that AI will revolutionize healthcare, proposing personalized systems for chronic conditions. He also highlights the need for national data sets to improve model accuracy and addresses the disruptive impact of AI on traditional media and investment strategies.

01:06:25

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Emad Mostaque

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Quick takeaways

The economic impact of AI is predicted to surpass that of COVID-19, with large companies actively seeking AI solutions and potential consolidation in the model industry.

Current AI models will quickly become obsolete as new models with better data quality are developed, emphasizing the need for standardization, personalized medicine, and national data sets.

The AI industry is heading towards a bubble, with excessive investments and potential outcomes not fully understood, highlighting the importance of good products, value delivery, and talent acquisition for both startups and incumbents.

Deep dives

The Economic Impact of AI

The guest suggests that the economic impact of AI will be significant, potentially surpassing that of COVID-19. Large companies are actively seeking AI solutions, and there will likely be a consolidation of a few key players in the foundation model industry. The models currently in use will quickly become outdated as new models with better data quality are developed. The guest emphasizes the importance of standardized models, personalized medicine, and the need for national data sets to ensure localization and accuracy. They also discuss the potential for AI to transform healthcare and solve challenging chronic conditions.

Can an authoritative source solve the economic misalignment in healthcare?

02:31

The Future of Content in a World of AI-first Publishers

01:23

AI for enterprise

00:40

The Importance of National Data Sets in AI

01:11

Intro

4min

Navigating Life's Challenges: From Cultural Adaptability to Pioneering AI for Autism

2min

AI Revolutionizing Chronic Healthcare

12min

The Case for National Data Sets in AI Development

2min

Navigating AI: Investment, Ethics, and Media Disruption

22min

Navigating the AI Landscape: Opportunities and Challenges

16min

Navigating the AI Landscape

5min

Navigating Leadership Challenges and Team Dynamics

4min

Emad Mostaque is the Co-Founder and CEO @ StabilityAI, the parent company of Stable Diffusion. Stability are building the foundation to activate humanity's potential. To date, Emad has raised over $110M with Stability with the latest round reportedly pricing the company at $4BN. Investors include Coatue, Lightspeed, Sound Ventures, OSS Capital and Airstreet Capital, to name a few. Prior to Stability, Emad was in the world of hedge funds, that was until his son was diagnosed with autism and he left to make a difference in the space and help find treatments and solutions.

In Today's Episode with Emad Mostaque We Discuss:

1.) From Hedge Funds to Finding Treatments for Autism to Leading the World of AI:

How Emad made his way from the world of hedge funds to founding one of the leading AI companies of our time?
How did Emad find a solution to parts of his son's autism with a $6 drug?
How does Emad believe we can use AI to solve the majority of medical problems today?
What does the future of healthcare look like with AI at the centre?

2.) Models: What is Real? What is False?

Why no models today will be used in a year?
Why all models are biased and how do we solve for it?
Why hallucinations are a feature and not a bug?
Why the size of your model does not matter anymore?
Why will there be national models specified to cultures and nations? How is this implemented?

3.) Who Wins: Startups or Incumbents:

Why does Emad believe there will only be 5 really important AI companies? Which will they be?
How does Emad review Google's AI strategy following their news last week? Was their integration of Google and Deepmind recently a success?
How does Emad assess Meta's AI strategy? Why does Zuckerberg now acknowledge the metaverse play was a mistake?
How does Emad evaluate the approach taken by Amazon? Why are they the dark horse in the race?
What can startups do to get a meaningful edge on the large incumbents? How do they compete with their distribution?

4.) The Next 12 Months: What Happens:

Why does Emad believe the .ai bubble will be bigger than the dot com bubble?
Why does Emad believe that the biggest companies built-in AI in the next 12 months will be services-based companies? How does the ecosystem look if this is the case?
Why will India and emerging markets embrace AI faster than anyone else? What happens to economies that have large segments reliant on freelance work that AI replaces?
Why will we see the death of many large content publishers and media companies? What does Emad mean when he says we will see the rise of "AI first publishers"?

5.) Open or Closed: What Wins:

Why does Emad believe we must be open by default? Why does open win?
Why does Emad side with Elon and believe we must pause the development of AI for 6 months?
How does Emad evaluate the leaked memo from Google stating that neither Google nor OpenAI are ahead? What does this mean for the AI ecosystem?
Where will the best AI talent concentrate? What do companies need to do to win the best talent?

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