"Through the utilization of AI, we're crafting prestigious German competitors on a global scale"
Is the AI bubble about to pop? This question is on many people's minds, particularly with the substantial investments in AI hardware raising concerns. Could the AI buzz fizzle out in the near future? What are the arguments for and against, and what's left of AI's future? Nicole Büttner, a renowned AI expert in the country, is the founder and CEO of Merantix Momentum, a company that specializes in AI. She assists startups, medium-sized companies, and conglomerates in generating sustainable value and transforming business models through AI.
ntv.de: Is the fear of the AI bubble bursting legitimate in the media and stock market?
Nicole Büttner: While you might see evidence of this on the stock market, the prices have since rebounded. It's important to differentiate between technological excitement, what technology can and cannot do, and how the market responds to it. Investors are questioning why they're not seeing a return on investment for many of the hyped AI products. There are striking similarities to the dot-com bubble in the early 2000s. There was a correction in the market, many companies didn't make it, but it was also a process of selection, and many of those companies are now among the most valuable in the world. No one would argue that the internet was overhyped.**
Is it merely a financial issue? OpenAI CEO Sam Altman stated in the spring: "Whether we spend $500 million, $5 billion, or $50 billion per year, I don't care. I truly don't care." How can companies with fewer resources even compete?
This again depends on the industry. There's the semiconductor and infrastructure sector, where Nvidia dominates. Then there are companies like OpenAI that offer large models like ChatGPT. Sam Altman seems to believe that you need to invest significantly to win the game. His thought is: I'll buy a large market share with a lot of money. Whether this strategy will succeed remains to be seen. We also see companies developing effective models with limited financial resources. Open-source models are also available. There are direct-to-consumer or business applications built on existing infrastructure and chips, which we, as investors, still believe in. It offers unlimited potential and is a field where many companies, including German ones, can become world market leaders in the next few years and decades.**
You refer to yourself as a tech optimist. Are we overly critical of AI in Germany?
I remain optimistic about AI because I believe it can address many of the challenges we face. Issues such as skills shortages and education can be significantly improved with AI, providing a better experience for students, citizens, and so on. I'm optimistic that AI will lead us to a better time and even help us. It's challenging for Germans to put aside their risk-averse lenses. But to me, it seems more rewarding to actively participate in the game and score a goal rather than acting as a referee. And it appears to me that we're taking on the referee role not only with the regulations we're dealing with.**
But is AI in need of regulation?
Yes, and it's essential and appropriate. Such that, however, our enthusiasm for the new and our desire for a paradigm shift have waned. That's not necessarily the case in the US, where they see more opportunities in technology.**
Janna Linke spoke with Nicole Büttner. The discussion was edited for clarity and smoothness. The full version of the conversation can be heard on the ntv podcast "Startup - now completely honest".
Despite the substantial investments in AI hardware, investors are questioning the return on investment for many hyped AI products, leading to concerns about a potential shortage of skilled workers to manage and utilize these advanced technologies effectively. Furthermore, the high costs associated with AI development and implementation can present challenges for smaller companies trying to compete in the market.
