Google’s DeepMind CEO says the massive funds flowing into AI bring with it loads of hype and a fair share of grifting

• The AI ​​funding windfall could add a lot of hype and “maybe a few scams,” says Demis Hassabis.
• “In some ways, AI is not hyped enough, but in some ways it is too hyped,” said the head of Google DeepMind.
• Investors have poured nearly $30 billion into generative AI deals in 2023, according to PitchBook.

Google DeepMind chief Demis Hassabis says increased AI funding “brings a whole bunch of hype and maybe a few scams.”

“In some ways, AI is not publicized enough, but in some ways it is too publicized,” Hassabis told the Financial Times in an article published on Sunday. “We talk about all sorts of things that just aren’t real.”

Investor fervor for AI, Hassabis told the Financial Times, reminded him of “other hot areas” like crypto.

“Some of that has now trickled down to AI, which I find a little unfortunate,” Hassabis told the outlet. “And it obscures science and research, which is phenomenal.”

The desire to profit from the current AI boom has driven investors to invest billions of dollars in companies working in this field. In September, Amazon announced plans to invest $4 billion in AI startup Anthropic.

It’s not just Amazon. Investors have accumulated nearly $30 billion in 691 generative AI deals in 2023, according to financial data provider PitchBook.

Fred Havemeyer, head of US AI and software research at Macquarie, told CNBC in March that investors “certainly don’t want to miss out on being part of the AI ​​ecosystem.”

“I definitely think there is FOMO in this market,” Havemeyer said.

Certainly, Hassabis’s warnings about possible cases of AI fraud are not without merit.

In March, the Securities and Exchange Commission (SEC) settled charges against two investment advisors accused of making “false and misleading statements” about their use of AI.

“We have seen time and time again that when new technologies emerge, they can create investor buzz as well as misrepresentations by then-Professor Hills,” SEC Chairman Gary Gensler said. in a speech in February, referencing a con artist who appears in the film “The Music Man.”

“If a company is raising money from the public, however, it must be honest about its use of AI and the associated risks,” Gensler continued.

Representatives for Hassabis did not immediately respond to a request for comment from Business Insider sent outside of normal business hours.

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