Fears about a bubble involving investments in artificial intelligence companies already on the market around the world. The CEO of one of the main beneficiaries of the huge valuation cycle driven by the explosion of AI in recent years gave his opinion: “In terms of value, AI is by far the most valuable technology we have ever seen.”
In a talk at the main annual event of Oracle (), the company he founded and where he sits as chairman of the board, he put the risk into perspective: “There will be people investing in AI because almost all technology companies nowadays call themselves AI companies, but they are not”, he said in a broadcast on the Oracle AI World stage.
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Much of the market’s fears about the risk that increasingly high investments in AI will not yield returns seek a parallel in the bubble of internet companies that took with it several young American companies between the mid-1990s and the beginning of the 2000s.
Companies such as pets.com, a company selling pet products, were emblematic examples. In less than a year after its IPO (initial public offering of shares), with shares trading at US$11, the company declared bankruptcy and was trading at 22 cents.
For Ellison, people confuse the bad examples that marked that moment with companies that survived and overcame the so-called “dot com” bubble. “People started confusing internet companies like PayPal or, even worse, search engine companies, with Pets.com,” he said.
“The smartest people I know are investing fortunes, to be more specific, they are investing their fortunes in building and training these AI models”, he states, giving examples such as those of Elon Musk, founders of Tesla and xAI, and Sam Altman, CEO of OpenAI.
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The market, however, has not calmed down with those in infrastructure to process its large language models (LLMs). Oracle has benefited from this by becoming one of the top cloud providers for companies like ChatGPT’s OpenAI.
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This year alone, the company’s shares jumped 80%, driven in part by more encouraging projections about revenue from contracts with AI developers. Oracle has teamed up with OpenAI on the Stargate project, which promises to invest US$500 billion in AI over the next four years.
*The reporter traveled to Oracle AI World at the invitation of Oracle
