Future gets sold before it’s built
“AI is the cheat code for fundraising.” That slogan’s been making the rounds in Silicon Valley for months. The future isn’t constructed first, it’s sold. There’s hype, pitch decks, and precision stoked buzzwords.
Even Sam Altman, CEO of OpenAI and one of the central figures of the AI revolution, recently admitted the obvious, we might be in a bubble.
In an interview with CNBC, he compared the current mania over AI to the .com bubble, the period during which the stock market crashed by almost 80% since there were so many “companies” in the form of only mascots and PowerPoints.
Hype is Older Than AI
Bubbles aren’t new. Remember when high definition video first came out? Suddenly everything was HD. Same happened with 3D TVs, blockchain, NFTs and metaverse.
Pattern is always the same, a kernel of truth wrapped in layers of exaggeration, sold as inevitability. AI is caught in the same cycle today. Headlines focus on stock prices and fundraising rounds, not actual value creation. It’s like judging a restaurant by how expensive their forks are.
MIT researchers found that 95% of companies experimenting with generative AI saw zero return on investment. Tools look good in demos but collapse in real world workflows.
AI can accelerate workflows, reduce errors, and free employees to focus on strategic or creative work. Useful? Absolutely. Transformational at scale? Potentially, but it’s not yet the sweeping revolution that headlines promise.
Why Companies Keep Spending
AI isn’t just a matter of software, it’s a massive investment in hardware, energy, and human oversight. Data centers already consume around 1.5% of global electricity, a figure projected to double by 2030 if AI demand continues. The resources behind AI are real and costly, even if the value created is still emerging.
Yet companies continue to pour billions into AI initiatives. Why? Fear of missing out and strategic positioning. No executive wants to fall behind competitors integrating AI into their operations. Just as the .com era demonstrated how a simple label could inflate valuations, today the term “AI-powered” attracts investor attention and market credibility. Even when immediate returns are uncertain, adopting AI is seen as essential to maintain relevance, protect market share, and prepare for the next technological wave.
Awareness Matters
Bubbles always feel logical from the inside. They’re held up not by results, but by pride, FOMO, and collective hope. Skepticism here isn’t pessimism, it’s a form of responsibility. Recognizing the difference between real AI progress and hype allows us to engage with technology more wisely, spot recurring patterns, and ask the critical question: Is there genuine value, or just another round of AI powered gimmicks?
Ventures that rely solely on marketing, hype, or speculative excitement will struggle once the bubble bursts. These are often the loudest companies, the ones dominating social media and investor conversations. Creating a sense of urgency that pressures others to follow along.
For anyone navigating this space, recognize the hype, focus on real value, and pay attention to the companies that are solving concrete problems.