They are venture capitalists. Even if you get burned in the process, in the business of predicting the next big thing. In the year While everyone is piling on crypto in 2021 – and despite many setbacks this year, many remain bullish about its future – 2022 sees the rise of generative AI.
But as with any transformative new technology, hype is sure to follow growing adoption, and as generative AI has garnered so much attention and funding, many VCs feel the growth sector will be the next bubble.
TechCrunch recently surveyed more than 35 investors across geographies, investment levels and sectors about how they feel about the year ahead. One of our questions asked for their predictions of where the next bubble will be, and about half of those surveyed mentioned generative AI.
While many investors say they are wary of the new technology, they also acknowledge that the sector could be doomed by its own competition.
Don Butler, managing director of TomVest Ventures, feels the bubble is already here. “We believe that the applicability of AI to many use cases will lead to a very large number of startups being funded in the space, including some at eye-watering prices, and so we think the next big bubble is already expanding in this area,” he said.
With consumer tools like ChatGPT, DALL-E, and Lensa AI gaining popularity both inside and outside the tech community, it’s no wonder how the sector is growing.
