AI Boom Or Bust? Alibaba Cloud’s Founder Says Most Of Today’s Apps Won’t Survive The Decade

Even as artificial intelligence (AI) spurs demand for tech companies, boosting their top and bottom lines, an industry veteran has warned of a potential bubble burst.

Downplaying the AI hype, Wang Jian, the founder of Alibaba AI and Cloud unit, said in an interview with Bloomberg that OpenAI, the AI startup co-founded by CEO Sam Altman, which ushered in the AI revolution with the launch of the ChatGPT large-language model (LLM), created “bias” or a skewed understanding of what AI can do.

Wang, a computer scientist, said, “Probably 90% of the AI people are talking about, I would say, will go away in five or 10 years because it’s not really the essence of this technology,” said the computer scientist.”

Many of the AI applications go beyond what OpenAI has propounded, he said. Wang, however, does not consider the current state of AI technology to be bad. “It just helps to explore,” he said.

The Global X Artificial Intelligence & Technology ETF (AIQ) has gained nearly 16% year-to-date, outperforming both the broader market and the tech sector. Big tech companies such as Nvidia (NVDA) and Microsoft (MSFT), which are front-runners, have also rallied by 29% and 22%, respectively.

The executive did not wade into the controversy over the AI arms race involving both the U.S. and China, as both countries believe supremacy in AI can shift the geopolitical power balance.

He also weighed in on the poaching of talent by deep-pocketed big tech companies. “When you are in the early stage of innovation, I don’t think talent is a problem because the only thing you need to do is to get the right person, not really the expensive person.”

Wang conceded that he never foresaw the frenzied pace at which AI has evolved. After moving to Alibaba from Microsoft Research Asia, he pitched the idea of foraying into computing to Jack Ma, co-founder of the Chinese e-commerce giant. His idea led to the establishment of the Alicloud business and later served as the precursor to the Qwen LLM.

At that time, he expected computing to become as essential as electricity or oil.

Wang also believes that China will remain a test bed for the new technology, adding that “People are just fascinated about technology. They’re doing a lot of different things.”

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