- The head of Google DeepMind pointed out a bubble-like pattern in the AI field.
- The AI-focused cryptocurrency market has declined.
- Additional factors may have contributed to its steep decline.
Demis Hassabis, head of Google DeepMind, warned that “bubble-like” patterns are emerging in parts of the AI industry. His statement came after Microsoft’s chief voiced similar concerns if adoption does not expand in the future. Perhaps due to more factors at the macro level, the AI token has reacted to a decline in its value.
Head of Google DeepMind AI
Demis Hassabis, CEO of Google DeepMind, spoke to the media and highlighted the emergence of a bubble-like segment in the AI sector. He added that there could be a correction in the industry, given that seed rounds are being made in startups that don’t have a product or technology.
But he defended Google’s position, saying the demand for AI is stronger than ever. Demis Hassabis said he was confident that his company would be okay even if the bubble bursts someday because the company has a business that can add AI capabilities to increase productivity.
His comments come at a time when Microsoft CEO Satya Nadella expressed similar concerns, saying the AI boom could wane without widespread adoption. He explained that for AI to achieve long-term growth, it is essential that it be used more widely around the world. Sathya is confident about the future of AI, saying the technology will prove useful in various fields, including the development of new drugs.
Shrinking AI crypto market
There has been a reaction from the AI crypto market, with the token depreciating significantly over the past 24 hours. TAO and NEAR have managed to hold their ground, but are still down 0.76% and 0.54%, respectively. ICP has lost around 3.03% of its value and VIRTUAL has plummeted around 5.22% as of this writing.
The global market capitalization of the sector as a whole decreased by 0.38% to $18.7 billion. The 24-hour trading volume also decreased by 12.91% to approximately $3.1 billion. Story (IP) was an exception among the top AI tokens, posting a 7.53% spike in one day.
More important factors
Statements about the AI industry are not the only factor that could cause a downward trend in AI tokens. Other points of contention will likely be the lack of a likely rate cut and the upcoming Wall Street week. The US Federal Reserve is unlikely to announce an interest rate cut next Wednesday.
Regarding Wall Street Week, one-fifth of the S&P 500 is expected to release its quarterly report next week. This could shed further light on investor sentiment, which has been hit hard by Trump’s threat to impose tariffs on multiple countries, including eight European countries.
