What you need to know
- In a recent interview, Linux Kernel lead developer Linus Torvalds claimed that AI is 90% marketing and 10% reality.
- The developer says he ignores advances in the AI landscape because “the whole tech industry around AI is in a very bad position.”
- Interestingly, he envisions a future where AI gains broad adoption and is integrated across companies for everyday use.
As an analyst with over two decades of experience in the tech industry, I find myself intrigued by the ongoing saga of AI and its potential future. Having witnessed the rise and fall of countless technologies, I’ve learned to take each proclamation with a grain of salt.
Based on the recent events, there is growing debate about where generative AI is heading in the tech industry. This is largely due to OpenAI’s financial woes, which could lead to bankruptcy with estimates suggesting losses of around $5 billion over the next year. Despite a lifeline from investors like Microsoft and NVIDIA, amounting to $6.6 billion, concerns about the future of AI and finding a profitable business model persist.
Could it be that AI is just a passing trend? Well, it’s hard to say for certain, but Linus Torvalds, the mastermind behind Linux Kernel development, recently offered some intriguing perspectives on this subject during an interview at the Open Source Summit in Vienna (as reported by Tom’s Hardware).
According to the developer, the AI landscape is characterized by “90% marketing and 10% reality:”
I find AI fascinating and believe it will significantly transform the globe. Yet, I despise the excessive hype surrounding it so much that I prefer to avoid getting caught up in it.
It’s intriguing that one forecast predicts AI could become obsolete, claiming that approximately 30% of AI-related projects will cease after their proof-of-concept phase by 2025. Conversely, industry analysts and experts believe companies that have early adopted and invested in AI are on the brink of experiencing their ‘iPhone moment’ with this technology. Notably, Microsoft, NVIDIA, and Apple have all experienced significant growth with AI, temporarily elevating each company to the position of the world’s most valuable, boasting market caps surpassing $3 trillion.
Yet, the achievements accomplished by these firms do not persuade Torvalds to hop aboard the AI bandwagon like many others. As stated by the chief developer:
Currently, my strategy toward AI is to essentially steer clear of it due to my belief that the entire technology sector surrounding AI is in a rather precarious state. (Smirks subtly)
However, it’s not all bad and written in stone that AI will flop. Torvalds claims that we might witness a shift in the next five years when AI will be integrated into our workplaces and become a crucial tool for everyday use.
Your guess about AI is as good as mine
In his role as lead developer, Linus Torvalds expressed concern about the growing impact of generative AI, which he finds to be increasingly resource-intensive. This is evident in terms of funding, cooling water, electricity, and other resources required for its operation. As the technology advances and becomes more complex, it’s likely that these demands will only increase further.
Sam Altman, CEO of OpenAI, suggests that superintelligence could be just a matter of a few thousand days. Passionate about achieving Artificial General Intelligence (AGI), Altman’s team at ChatGPT’s maker may soon reach this milestone, according to his former colleagues. However, one of OpenAI’s ex-lead researchers cautions that the company might not be prepared for all the implications of the AGI benchmark, which is concerning given a high likelihood (99.9%) that AI could potentially pose an existential risk to humanity.
However, Sam Altman suggests that reaching this goal would require approximately $7 trillion and several years, involving the construction of 36 semiconductor plants and additional data centers. This ambitious AI vision has earned Altman the nickname “podcasting bro.” Experts are concerned that investors’ enthusiasm for AI may be waning, potentially leading them to shift their investments elsewhere due to dwindling patience.
OpenAI, creators of ChatGPT, faces a challenging transition into becoming a profitable business within the next two years, or risk returning funds invested by shareholders. The organization is currently embroiled in legal disputes with Elon Musk, one of its original co-founders, regarding this matter. Experts predict that this shift to profitability could encounter significant obstacles and rejections from government entities and key stakeholders.
There are rumors suggesting that Microsoft might buy OpenAI in the coming three years, given allegations that its release of Copilot, described as a modernized version of Clippy, has been detrimental to the AI industry.
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2024-10-29 02:09