Another top tech visionary ready to launch an AI startup: Is the AI ​​boom really in its infancy?

• Nvidia (NVDA) is drawing comparisons to Cisco during the dotcom bubble, when expectations proved exaggerated.

• Jeff Bezos is founding a new company called Project Prometheus, focused on AI opportunities.

• Many tech visionaries are leaving big companies to launch AI startups. Retaining talent could prove difficult.

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In many ways, it feels like the ongoing AI boom (or revolution) mirrors the endings that happened before the great dot-com bubble of 2000-2001 burst. We have seen a number of circular financings among the giants and, as Dr. Michael Burry of The Big Short pointed out in a recent note: Nvidia (NASDAQ: NVDA), which is leading the AI ​​chip race, appears to be drawing similarities with Cisco (NASDAQ: CSCO) since the days of the Internet boom. Without a doubt, back when the Internet was booming, it was Cisco that was considered the game of choice.

As it turned out, expectations were greatly exaggerated and Cisco stock took a big hit when the great bubble finally burst. Indeed, Cisco appeared to be in the blast zone when the bubble burst. Believe it or not, Cisco stock has only recently regained the ground it lost since its 2000 peak last year. Without a doubt, it took 25 years to recover, and it’s really unclear whether Cisco will stay above these levels if AI is in a bubble and doomed to go bankrupt at some point in the next couple of years.

With many promising AI startups popping up left, right and center, and many big-name visionaries abandoning their big roles to try to lead the charge in this revolution, there is a lot of enthusiasm mixed with this concern. Undoubtedly, during the dotcom bubble era, many startups came out of nowhere. Many of them did not survive when the bubble burst and insolvency set in.

And while things could very well be different this time around since the AI ​​revolution could lead to serious and significant profits in a faster-than-expected time frame, the growing number of startups could ring alarm bells in the ears of investors, especially those who were already quite skeptical about the latest AI-led bull run.

Whether it’s Jeff Bezos founding (and preparing to become CEO of) a new company called Project Prometheus with another visionary, an anonymous startup led by a former industrial designer from Apple (NASDAQ:AAPL), Yann LeCun, who leaves a very respectable position at Metaplatforms (NASDAQ: META) to launch an advanced artificial intelligence startup, it seems many very smart AI innovators see plenty of opportunities to do their own thing.

Indeed, if there is a revolutionary technology that opens the door to new opportunities, we may still be in the early stages of a bubble. And given that many of the most attractive AI pure-players have yet to go public, I’m not sure there’s enough retail mania to conclude that we’re nearing the top of a bubble in AI. Regardless, it will be interesting to see how many more tech visionaries leave to start their own companies.

Of course, the startup game is tough, but with people like Jeff Bezos willing to dedicate significant amounts of their time and money to this effort, I believe there is a real opportunity that may still be underestimated by investors. We don’t just see geniuses leaving to pursue a risky venture unless there is a golden opportunity to be seized, as the technology landscape seems to be changing.

As Bezos said, there may be an opportunity as well as an “industry bubble” and that’s not necessarily a bad thing. Given that he ran a small business during the dotcom crisis, I would say there is an opportunity for investors who can choose their location carefully. It’s hard to say what wins and what loses in a period like this, especially if the AI ​​boom leads to a painful correction in financial markets. Either way, it will be harder for big tech titans to retain their top talent as more people choose to launch startups as the AI ​​revolution fuels transformative new ideas and businesses.

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