AI is not in a bubble, says VC founder. Why he says it's different to the dotcom boom

Core Viewpoint - The current market sentiment regarding artificial intelligence (AI) is divided, with some investors expressing concerns about a potential bubble while others believe the market is not overheating. Group 1: Market Sentiment - Billionaire investor Ray Dalio indicated that his personal "bubble indicator" is relatively high, suggesting caution in the market [1] - Federal Reserve Chair Jerome Powell characterized the AI boom as "different" from the dotcom bubble, implying a more stable growth trajectory [1] Group 2: Adoption and Investment - Magnus Grimeland, founder of Antler, stated that the market is not in a bubble, citing the rapid adoption of AI by businesses as a key factor [2] - Grimeland noted that the speed of AI adoption is significantly faster than previous tech shifts, such as the transition to cloud computing, which took a decade [3] - AI is currently a priority for leaders across various sectors, indicating a strong willingness to invest in the technology [3] Group 3: Revenue Generation - Grimeland emphasized that the growth in AI is supported by real revenues, contrasting it with the dotcom bubble where many startups were unprofitable [4] - OpenAI reported reaching $10 billion in annual recurring revenue (ARR) as of June, showcasing substantial financial performance [5] - Lovable, an AI-driven company, achieved over $100 million in ARR within eight months, further illustrating the revenue potential in the AI sector [5] Group 4: Consumer Behavior - The rapid change in consumer behavior towards AI technology is notable, with Grimeland highlighting a significant shift in search engine usage from Google to AI tools [6] - The launch of OpenAI's ChatGPT Atlas browser for Mac OS has impacted the stock performance of Google's parent company, Alphabet, indicating competitive pressures in the market [6]