AI CEO warns AI will be “Biggest Bubble of All Time.”


There is a wave of excitement surrounding AI, with investors pouring billions into promising AI startups, eagerly anticipating the next big breakthrough. However, not everyone shares the same optimism. Even Emad Mostaque, the CEO of Stability AI, an open-source AI company behind the immensely popular Stable Diffusion image generator, expresses concerns about the industry’s sustainability.

“I believe this will be the largest bubble in history,” Mostaque shared during a recent call with banking analysts, as quoted by CNBC. He further explained that the technology is not yet ready to meet the demands of the financial industry.

Mostaque aptly refers to this phenomenon as the ‘dot AI’ bubble, emphasizing that its impact is yet to fully materialize.

Weighing the Perspectives

But should we accept Mostaque’s statement at face value? Why would the CEO of an AI company, holding such a prominent position, warn investors about the potential downfall of AI? Interestingly, just a few months ago, Mostaque had a completely different stance, confidently asserting at a conference that “of course” AI is not a bubble, emphasizing its significance surpassing that of 5G or self-driving cars.

So, which version should we believe?

Naturally, Mostaque’s contradictory statements have attracted considerable scrutiny. According to a recent Forbes profile, his claims have been misleading, including the revelation that he did not obtain a master’s degree from Oxford University, as he previously suggested. The publication further accused him of exaggerating and making dubious claims to boost his success and deceive investors.

While Mostaque has denied these allegations, this background sheds light on the context of his latest prediction. Even if we consider the résumé issue a misunderstanding, should we unquestioningly follow the words of a CEO who admits to neglecting formalities such as receiving his diploma from Oxford?

The Enigma of Mixed Signals

Ironically, Mostaque has managed to secure over $100 million in investments, as reported by CNBC. This raises a crucial question: why is he raising funds for an industry that he believes might eventually collapse?

Reconciling the notion that AI represents “the biggest bubble of all time” with his plea for a $1 trillion investment, stating its significance surpasses that of 5G as a knowledge infrastructure, is challenging.

Are we standing at the precipice of an unprecedented opportunity or an impending financial disaster?

It is possible that Mostaque is hedging his bets to appease investors. By asserting that any outcome is possible, he avoids the risk of being proven wrong.


The AI industry remains divided on the fate of this rapidly growing field. While some proclaim the imminent bursting of the ‘dot AI’ bubble, others assert its potential to revolutionize various sectors. Emad Mostaque’s contradictory statements and controversial background only add to the complexity of the matter. As investors and stakeholders, it is crucial to critically evaluate the available information and form an independent judgment on the future of AI. Only time will reveal whether AI’s hype will propel it forward or if it will succumb to the weight of its own expectations.

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