Baidu CEO: 99% of AI companies won’t survive bubble burst [Video]

Recap: The rising popularity of generative AI has given place to the development of numerous startups making bold claims about the technology’s capabilities. Many onlookers liken the trend to a classic market bubble, a sentiment shared by the CEO of Chinese tech giant Baidu. However, when the lofty expectations for AI collide with reality, most AI startups may not survive.

Baidu CEO Robin Li believes that only about one percent of AI companies will endure after the inevitable burst of the AI bubble. Li suggests this will result in a healthier market with more realistic applications for the emerging technology.

Generative AI has remained a hot topic in the years following its initial surge, driven by companies like OpenAI and Nvidia. The latter, which produces the hardware that most AI companies depend on, could soon become the …