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 @
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 The models currently in use will quickly become outdated as new models with better data quality are developed.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.
AI-first Publishers and Media Transformation
The future of media and publishing will likely involve the emergence of AI-first publishers, combining AI technology with human input. These publishers will leverage AI models to automate the writing process, allowing for personalized news articles and faster content creation. The guest believes that maintaining authenticity and authority will be crucial in this evolving landscape. The adoption of AI in media is expected to have a significant impact on traditional media companies, and those that are able to adapt and integrate AI technology effectively may thrive in this changing environment.
The Dot AI Bubble and Future Business Models
The guest predicts that the AI industry is headed for a bubble, with excessive amounts of money being invested without fully understanding the potential outcomes. They emphasize the importance of good products, value delivery, and distribution for startups and incumbents alike. The transformation toward AI integration in various industries, especially enterprise, is expected to drive significant economic impact. Startups that can provide solutions and integrate their technologies with large enterprises are likely to see success. The guest also discusses the need for talent and the challenges of keeping high-quality teams together.
The Future of AI and Coding
The guest believes that in the future, coding may become less necessary as AI advances. With improved AI language models, users will be able to communicate their requirements to AI systems, which will generate code and build applications accordingly. The need for human coders may diminish as AI becomes more skilled in generating code and understanding user instructions. This shift could democratize the ability to build applications and reduce the learning curve traditionally associated with coding.
The Importance of Supercomputers in Open AI
Supercomputers play a crucial role in driving the success of Open AI. By having more supercomputers than any other company and making their models open and accessible, Open AI has gained an advantage. Their open approach allows them to build strong partnerships with chip manufacturers and drive demand for their chips. This advantage and access to supercomputers give Open AI a unique position in the market.
Transforming Education and Health Care with AI
The impact of AI on education and healthcare is significant. AI disruption in these sectors, such as administrative and bureaucratic processes, is expected in the next few years. The UK stands to benefit from AI advancement and policies that embrace innovation. Education will undergo major changes, with AI integration offering personalized learning experiences. While there are concerns about the societal implications of AI, leveraging AI technology can enhance human interactions and lead to positive outcomes.
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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