From AI will replace humans to AI is in a bubble

Stephanie Palazzolo writing for The Information.

Not only has the one-year-old Thinking Machines not yet released a product, it hasn’t talked publicly about what that product will be. Even some of the company’s investors don’t have a very good idea of what it is working on. While raising capital for Thinking Machines earlier this year and late last year, Murati shared few details about what it would be building, prospective investors said.

“It was the most absurd pitch meeting,” one investor who met with Murati said. “She was like, ‘So we’re doing an AI company with the best AI people, but we can’t answer any questions.’”

Despite that vagueness, Murati raised $2 billion in funding—the largest seed round ever—at a $10 billion pre-investment valuation from top Silicon Valley VC firms including Andreessen Horowitz, Accel and GV. The investors also made the highly unusual decision to give her total veto power over the board of directors. (Thinking Machines is using Nvidia-powered servers it rents from Google Cloud, whose ultimate parent Alphabet also oversees GV.)

When 2025 started all I could read was AI is going to replace humans. Now its all about—AI is in a bubble. These valuations don’t make sense.

I don’t know what to believe anymore. But I am bookmarking this in case the bubble explodes in the future.