In 2023, the artificial intelligence (AI) industry saw a massive influx of investment, with generative AI and AI-related startups raising nearly $50 billion, according to Crunchbase. This surge in funding was driven by the impressive progress made by AI, particularly exemplified by ChatGPT. As a result, share prices for companies involved in manufacturing advanced chips for powerful AI models, such as Nvidia, AMD, and Arm, have soared in 2024.
At the World Governments Summit in Dubai, entrepreneurs and venture capitalists shared their predictions for the AI industry in 2024. Tech entrepreneur and investor Divyank Turakhia pointed out the “winner takes all” dynamic in building large AI models, whereby only a few companies will secure all the customers and revenue, leaving others behind. This could spell trouble for startups that raised substantial funding to compete with tech giants and established AI companies.
Turakhia also questioned OpenAI CEO Sam Altman’s reported plan to raise $7 trillion for AI infrastructure, suggesting it may be a sales tactic to attract further investment. He argued that by setting such a high target, it becomes easier to secure a smaller amount, like $100 billion.
Another speaker at the event, Cyrus Sigari, co-founder of AI startup Shuttersong, emphasized the importance of AI ethics and regulation. Sigari emphasized the need for transparency and accountability when it comes to AI, particularly in areas like facial recognition and machine learning algorithms. He urged governments and industry leaders to come together to establish regulations that protect individuals and society as a whole.
In summary, the AI industry experienced significant investment in 2023, leading to a surge in share prices for companies involved in manufacturing advanced AI chips. However, there are concerns about the concentration of power among a few dominant players in the AI market. Additionally, questions have been raised about the fundraising tactics employed by industry figures. Going forward, there is a growing emphasis on the need for AI ethics and regulation to ensure transparency and accountability in the development and deployment of AI technologies.
