AI Will Be the Biggest 'Bubble' Of All Time, Says ChatGPT Rival CEO: 'It Hasn't Even Started Yet'

Emad Mostaque, CEO of Stability AI, made a bold prediction about the future of artificial intelligence (AI), stating that it will be the “biggest bubble of all time.”

What Happened: Speaking with UBS analysts last week, Mostaque expressed his belief that AI is still in its early stages and not ready for mass-scale adoption in industries like banking, CNBC reports.

"I call it the ‘dot AI' bubble, and it hasn't even started yet," said Mostaque.

Stability AI is the company behind the popular generative AI tool Stable Diffusion, an alternative to OpenAI‘s ChatGPT. It has raised over $100 million from investors and has more than a million users.

Mostaque also warned that companies that do not use AI appropriately in their businesses will be “punished” by the stock market.

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Why It Matters: This prediction comes amidst a growing debate over the potential of an AI bubble. As earlier discussions on Benzinga have highlighted, concerns about a bubble are fueled by rapid advancements in AI that could potentially outpace the industry itself.

Michael Hartnett, Bank of America‘s chief investment strategist, has previously labeled AI as an “infant bubble” and warned that federal action could burst it. Meanwhile, Goldman Sachs has noted the transformative potential of generative AI on U.S. equities, while also cautioning that past productivity surges have occasionally resulted in equity bubbles that subsequently burst.

Anthony Scaramucci, the founder of SkyBridge Capital, has also encouraged investment in AI stocks, despite acknowledging the potential for a bubble.

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