PYMNTS.com April 29, 2024
AI may represent a “field of dreams,” but investors are reportedly seeing a potential nightmare.
As The Wall Street Journal (WSJ) reported Monday (April 29), startups in the artificial intelligence (AI) space continue to take in billions of dollars in investments, although many of those businesses have yet to produce a viable product. This has led to concerns about a bubble as companies try to generate revenue beyond AI hype.
The report cites figures from venture firm Sequoia Capital, which at its AI summit last month estimated that it had invested $50 billion into the chips needed to train language models, while revenues from generative AI startups came to $3 billion.
“Everybody’s assuming: if you build it, they will come....
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