The AI hype cycle has dominated the startup ecosystem. The hype was big. Huge. Even though it feels like we’ll eventually hit the trough of disillusionment, I keep hearing about more useful AI applications. We're at this crossroads, with two trends converging: 1. The hype energy running out (it's already starting) 2. The actual utility of AI increasing Which line intersects first? Does the hype live up to itself before the energy fizzles out? We might need a GPT-5 or some other big breakthrough to push us through.
I’m starting to think this AI hype will last much longer. If we compare it with previous trends like blockchain or big data, AI is growing much faster and proving to be genuinely useful, not just a buzzword. The difference here is that AI’s practical applications are already impacting industries, and the utility continues to rise. It feels like we might be on the cusp of something even bigger, especially with the potential for breakthroughs like GPT-5 to extend the momentum further.
I've got 1 more dilemma for you. More specialized models are coming out every day. The leading theory is that companies will adopt 5-20 specialized models or agents over the years instead of relying solely on 1 general-purpose model like ChatGPT. On the other hand, Altman continues to claim that superintelligence is near implying that 1 general-purpose model will eventually be good enough to beat niche-specific models in their very own niches. Which line do you think will intersect first?
AI's role is far beyond mere practical utility—it's the destiny of our species at this moment in time. There is no hype; this is the beginning of artificial intelligence being woven into every fabric of society on a profound level. We are now, collectively, engaging with AI as a natural part of our daily lives, much like eating or sleeping. Soon, AI will power the robots that walk among us. This is not just another technological advancement; it is a fundamental part of our next evolutionary step as a species.
Most of the hype is coming from the dominating players though. Google, Tesla, OpenAI, et al. Heck, even Apple. Big announcements with polished demos. Gimmicks. They’re leading the way for a long tail of startups. Remember the Google AI assistant making phone calls to local businesses on your behalf? That was 2018. There have been amazing breakthroughs since, but many of the promises have also failed to materialize.
the energy issue can be fixed relatively quickly with more efficient models and new energy sources. In the mean time, plenty of cash to trow at it.
AI feels to me simply like an extension of software; as always, the gimmicks fade and the real use cases thrive in the value they create
Immad Akhund nteresting perspective! Do you think we’ll see a significant breakthrough soon enough to keep the momentum going, or is the trough of disillusionment inevitable?
Does hype drive innovation? What comes first: breakthrough or disillusionment? Immad Akhund
VP of Marketing @ Alembic
2moI think we are still early on the curve up. Enterprise AI pilots are now staring to move into production which will unlock the next wave of value creation. I believe the AI application layer is now just starting to emerge. This ecosystem is tracking the smartphone revolution closely, and I expect it to follow a nearly identical path.