OpenAI founder Sam Altman’s insights on artificial intelligence (AI)
OpenAI founder Sam Altman’s insights on artificial intelligence (AI) suggest that the excitement surrounding this technology might overshadow its real-world applications. In recent months, the strong interactions between AI and the digital asset sector have become a significant topic of discussion. According to Altman, investments in AI are growing disproportionately, and this exaggerated growth might impact cryptocurrencies markets.
The AI and Cryptocurrency Connection
Companies focusing on artificial intelligence and cryptocurrency assets have been attracting considerable investments over recent years. Nonetheless, experts highlight significant sustainability concerns lurking behind these investments. Altman claims that investors are overly enthusiastic about AI, akin to past internet bubbles, leading to a potential overvaluation.
“When bubbles form, intelligent people become overly excited about a kernel of truth. Looking back at past bubbles, such as the Dotcom crash, there was always a critical technology involved. However, people got carried away. Are we, as investors, too excited about AI? In my opinion, the answer is yes,” stated Sam Altman in a discussion with The Verge.
Despite signals from the market indicating that AI infrastructure might be undervalued, major AI tokens have recently struggled to perform. Bittensor (TAO) is one standout project developing blockchain infrastructure related to machine learning, yet most major AI tokens haven’t garnered the anticipated interest, with some projects even deemed as lacking in functionality.
Growing Concerns Among Top Developers
Players in the cryptocurrency industry are closely monitoring developments related to the rising AI bubble. Experts warn that without a substantial use case, the sustainability of these technologies might be at risk, even as venture capital funds currently support them. The high costs associated with AI applications make providing them to users at reasonable prices a challenge.
“As a user, if you’re not required to pay a thousand dollars for an AI application, the sole support right now is VC investments. Should these funds disappear; the AI application layer becomes unprofitable, the LLM layer turns unsustainable, and the hardware layer risk collapsing,” an expert analyst shared on social media.
Some changes between the upcoming ChatGPT-5 and its predecessor 4, such as the “router” system consuming twice as many tokens as the previous version, have sparked cost-benefit inquiries among users. General community feedback suggests that the software’s benefits do not justify its cost, potentially making major AI companies more vulnerable to financial fluctuations.
Ongoing uncertainty is anticipated to impact the AI-focused cryptocurrency market directly. The high volatility in the sector suggests that such bubbles may cause widespread industry disruptions.
“I’m an expert on bubbles. I’m reluctant to say it, but the AI bubble will burst next year. When the promise of infinite scaling is not met, the equation changes. Even if not all companies are affected, those built solely on this premise may face difficulties,” a market analyst warned on social media.
Experts and market observers advise investors to exercise caution during this period. They emphasize that the turbulence experienced in different technologies in the past could be equally applicable to the AI-centric crypto sector.
