Many companies dealing in artificial intelligence (AI) saw their valuations skyrocket in 2024. Nvidia Corporation NVDA, for example, became the most valuable company in the world several times throughout the year.
One CEO of an AI company predicts 2025 will be a different scenario, and there could be at least one unnamed company in the space that sees its market capitalization cut in half.
What Happened: Hugging Face co-founder and CEO Clem Delangue shared his 2025 predictions in a LinkedIn post:
- There will be the first major public protest related to AI
- A big company will see its market cap divided by two or more because of AI
- At least 100,000 personal AI robots will be pre-ordered
- China will start to lead the AI race (as a consequence of leading the open-source AI race)
- There will be big breakthroughs in AI for biology and chemistry
- We will begin to see the economic and employment growth potential of AI, with 15M AI builders on Hugging Face
Based on prediction three above, Delangue sees strong demand for personal AI robots, which could be music to the ears of Tesla Inc TSLA investors. The Austin, Texas-based carmaker is expected to share more details on its Optimus Bot in 2025 and begin taking pre-orders.
Other investors, particularly those in the AI space, will likely not love seeing some of Delangue’s predictions come true.
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Why It's Important: Delangue's 2025 predictions should be taken seriously. After all, the CEO shared how his 2024 predictions did in the same post. A green check mark indicates a hit while red circles mean he missed.
- A hyped AI company will go bankrupt or get acquired for a ridiculously low price (green check)
- Open-source LLMs will reach the level of the best closed-source LLMs (green check)
- Big breakthroughs in AI for video, time-series, biology and chemistry (green check for video, red circle for time-series, biology and chemistry)
- We will talk much more about the cost (monetary and environmental) of AI (green check for monetary, red circle for environmental)
- A popular media will be mostly AI-generated (green check)
- 10 million AI builders on Hugging Face leading to no increase of unemployment (says soon, while listing 7M of AI builders on Hugging Face)
With Delangue at the helm, Hugging Face raised $235 million in a funding round, which valued the company at $4.5 billion in August 2023.
The company’s investors include Nvidia, Alphabet Inc GOOGGOOGL, Amazon.com Inc AMZN, Advanced Micro Devices AMD, Intel Corporation INTC, International Business Machines IBM and Qualcomm Inc QCOM.
Hugging Face has partnerships with several of these investors. The company announced a partnership with Nvidia for the robotics sector last month. Earlier this year, Hugging Face also partnered with Amazon to work on AI models.
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