Large language models (LLMs) are the real bubble that could burst, although an AI bubble gets more attention, Hugging Face CEO Clem Delangue said during Axios BFD on Tuesday.
Why it matters: Wall Street has been concerned over an AI bubble and its potential collapse after the arrival of game-changing LLMs like ChatGPT transformed the AI market.
- "I think the LLM bubble might be bursting next year," Delangue told Axios' Dan Primack in New York City.
Yes, but: Delangue sees potential for AI's applications in biology, chemistry, images, audio and video, he said.
- "LLM is just a subset of AI," he said.
Context: Hugging Face, which bills itself as GitHub for machine learning, says it is "the AI community building the future." The company provides open-source tools for developing artificial intelligence.
- "We're on a mission to democratize good machine learning, one commitment at a time," its website said.
Zoom out: Google, Amazon, Nvidia, IBM and other tech companies invested in Hugging Face in 2023.
- Google Cloud Tech announced this month that it was expanding its partnership with Hugging Face to accelerate open model developments.
State of play: Investors have signaled growing unease over Big Tech's borrowing to fund AI infrastructure.
- Google CEO Sundar Pichai said Tuesday that a burst AI bubble would not spare any company. He also said there is some "irrationality" in the AI boom.
Go deeper: AI's next act: World models that move beyond language
Editor's note: This story has been updated with details throughout.
