Demis Hassabis drew attention to what is happening in the artificial intelligence market during his speech at the World Economic Forum in Davos. In his opinion “Multi-billion dollar funding for new startups that don't yet have a product, technology or anything seems unsustainable.”. He added that this could lead to “corrections in some parts of the market.”
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The Financial Times cited an example of an investment that is uncertain in the long run involvement of venture capitalists in Thinking Machine Lab – a startup of former OpenAI director Mira Murati, which was valued at USD 10 billion. just six months after its founding (the company was founded in February 2025), without any details about the business. “FT” reminds that the startup recently lost several key employees, which has already raised doubts about its long-term prospects
The head of Google DeepMind warns investors in the AI market
As the Financial Times points out, Hassabis' comments came at the same time that other technology leaders, such as Nvidia's Jensen Huang and Microsoft's Satya Nadella, pushed back at Davos on concerns about excessive investment in the sector.
British investor and technology market expert Jeremy Grantham also spoke in an interview with Business Insider about the fact that “AI is one of the largest bubbles in history.” He said that if this bubble bursts, “it will most likely lead to a collapse of the stock market”, but it is very unlikely that this will happen.
In turn, Hassabis emphasized that the demand for AI in Google products is stronger than ever and artificial intelligence may turn out to be the most advanced technology of all time. He also added that the possible bursting of the investment bubble will not harm companies such as Google or others from the Big Tech group. “We have a great business to which we can add artificial intelligence functions and increase its efficiency,” he said, quoted by the FT.
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According to information from the Financial Times, the debate in Davos also focused on the growing risks and harms associated with AI. In recent months, among others: OpenAI has been hit with lawsuits after allegations that its chatbot encouraged young people to commit suicide. Elon Musk's XAI, meanwhile, was heavily criticized after it was revealed that his Grok chatbot was used to generate sexualized images of women and children. Hassabis emphasized that it is now necessary to focus on the safe and responsible development of AI and show the general public what benefits this technology can bring.
