AI Leaders Sound Alarm: Valuations Are Unsustainable

Industry leaders are sounding alarm bells over the valuations of premium AI companies. Nikhil Kamath, co-founder of Zerodha, and Brian Armstrong, CEO of Coinbase, have compared the current AI frenzy to the dot-com crash and past crypto bubbles.

Kamath went as far as saying that if he were to short every private AI company today, in five years, he might make money. 'It feels a bit like the Internet bubble,' he said.

Armstrong echoed this sentiment, pointing out the stark cost gap between elite frontier labs and open-source models. He noted that top-tier labs spend billions building the next breakthrough, while open-source alternatives reach the market at a tiny fraction of that price, up to 99% less for inference.