Artificial intelligence start-ups are overvalued and most will fail to make money, according to Vinod Khosla, an early OpenAI backer, in a warning to investors who are pouring billions into the buzzy sector.
Since the launch of OpenAI’s ChatGPT chatbot a year ago, investors have rushed to put their money in AI start-ups, including rival chatbot makers Inflection, Anthropic and Cohere, sending valuations soaring.
“Most investments in AI today, venture investments, will lose money,” Khosla said this month at a technology conference in Laguna Beach, California.
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