To be honest, I am really frustrated with what is happening: the hype train killing something which in principle could be a good thing, as usual. In the second half of the 2010s, it was blockchain: Payments - blockchain is the solution. Logistics - blockchain. World hunger - blockchain. Cure for cancer - blockchain. 75% of all job offers from startups were blockchain-related, and admittedly, I worked at such a startup, which, from what I'm able to gather, is a few months away from total collapse.

With vision models in the late 2010s, I was seeing AI winter 2.0 just around the corner - it felt like this was the best we could come up with. GANs were, to a very large degree, a party trick (and frankly, they still are).

LLMs changed that. And now everyone is shoving AI assistants down our throats, and people are trying to solve the exact same problems they were before, except now it's not blockchain but AI. To be clear: I was never on board with blockchain. AI - I can get behind it in some scenarios, and frankly, I use it every now and then. Startups and founders are very well aware that most startups and founders fail. But most commonly, they fail to acknowledge that the likelihood of them being part of the failing chunk is astronomically high.

Check this: a year and a half after ChatGPT came about and a number of very good open-source LLMs emerged, everyone and their dog has come up with some AI product (90% of the time it's an assistant). An assistant which, at large, is not very good. In addition, most of those are just frontends to ChatGPT. How do I know? Glad you asked - I've also been very critical of the modern-day web since people have been doing everything they can to outsource everything to the client. The number of times I've seen "id": "gpt-3.5-turbo" in the developer tools is astronomical.

Here's the simple truth: writing the code to train an AI model is not wildly difficult with all the documentation and resources you can get for free. The problems are:

Finding a shit load of data (and good data), which is becoming increasingly more difficult and borderline impossible - everyone is fencing their sites, services, and APIs - APIs which were completely free 2 years ago will set you back tens of thousands for even basic data.

As I said, the code you need to write is not something out of reach. Training it, on the other hand, is borderline impossible. Simply because it costs A LOT. Take Phi-3, which is a model you can easily run on a decent consumer-grade GPU. And even if you are aiming a bit higher, you can get something like a V100 on eBay for very little. But if you open up the documentation, you will see that in order to train it, Microsoft used 512x H100s. Even renting them out will set you back millions, and you can't be too sure how well you would be able to pull it off.

So in the grand scheme of things, what is happening now is the corporate equivalent of pump-and-dump. It's not even fake it till you make it. The big question on my mind is what would happen with the thousands of companies that have received substantial investments, have delivered a product, only for it to crash the second OpenAI stops working. And even not so much the companies, but the people behind these companies. As a friend once said, "If you owe 1M to the bank, you have a problem. If you owe 1B to the bank, the bank has a problem." In the context of startup investments, you are probably closer to 1M than 1B. Then again investors are commonly putting their eggs in different baskets but as it happens with investments and the current situation, all baskets are pretty risky, and the safe baskets are pretty full.

We are already seeing tons of failed products that have burned through astronomical amounts of cash. I am a believer in AI as an enhancement tool (not for productivity, not for solving problems, but just as an enhancement to your stack of tools). What I do fear is that sooner or later, people will start getting disappointed and frustrated with the lack of results, and before you know it, just the acronym "AI" will make everyone roll their eyes when they hear it. Examples: "www", "SEO", "online ads", "apps", "cloud", "blockchain".