Eric Hippeau, managing partner at Lerer Hippeau, predicts that there will be mini bubbles in the artificial intelligence (AI) industry as it becomes more integrated into the economy. In a CNBC interview, he explained that AI technology is still in its early stages of development and it typically takes around 10 years for fundamental technologies like personal computers, mobile phones, and now AI to be fully adopted by society and the economy.
Hippeau believes that we are only at the beginning of AI adoption, so it is natural to expect some bubbles along the way. He used Nvidia as an example of a company benefiting from the demand for AI chips. Nvidia sold over $50 billion worth of chips to data centers last year and has already sold about $25 billion in the first quarter of this year. The demand for AI chips is only expected to increase in the future, according to Hippeau.
However, Hippeau expressed concerns about government agencies potentially slowing down the development of AI technology without announcing any specific reasons. He warned that successful companies investing billions of dollars into AI need to be closely monitored and regulated to avoid any potential issues. Despite his concerns, Hippeau believes that an ecosystem of start-ups will also emerge alongside these large corporations to develop innovative solutions using AI technology.
