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Is AI going to end the world, save the world or just cost you a lot of money?
We’ve all seen Terminator so the first is a possible, the second is very improbable, but of the 3, the third is most likely.
We wish every company luck and of course, we hope for the sake of the world (and the fortunes resting on it) that there is no bubble. But recently Eleven Labs, with 40 or so employees and an annual revenue of about $4.5m, was valued at $100 million.
It might make it. But history tells us that most new AI businesses won’t.
When the first internet boom began in the late 1990s, early adopters said it would wipeout most existing businesses. Shares in companies that weren’t considered sufficiently up on the new game got trashed.
Some got around this by sticking .com at the end of their name and launching a website. They dotcommed or dotconned their way out of it.
That will probably happen soon with AI. Every business will claim to be an early adopter and those that aren’t will lose value while that same money is pumped into AI caused by a fear of missing out.
Most of the AI imitators will fail. Bear that in mind.
As for the values now attached to AI firms, well, some of them will grow into those values, come to earn them; many others will turn out to be fantasy valuations.
READ MORE by visiting our website at TPP Global in the insights section.
