Warning Signs: Is the AI Startup Bubble Ready to Pop?

We’re just now starting to see the first signs of the AI hype subsiding. Recently, two of the highest flying generative AI startups Jasper and Mutiny started laying off employees. Jasper, which was probably the single biggest success story for a company built on top of ChatGPT, saw massive churn in their customers, apparently cutting their revenue in half from a high of 150M to 75M. News also came out that ChatGPT saw its monthly traffic and users decline for the first time, and visits to Character.AI the second most popular chatbot, has dropped 35%. That’s led many experts to say this is a sign the chatbot's novelty wearing off. And to top it off, the maker of ChatGPT OpenAI is now being investigated by the FTC for potentially violating consumer protection laws.
So is this the beginning of the end for what some have called the biggest bubble of all time, or just a temporary lull in the AI revolution to come? Let’s figure out what’s actually going on here.

[@nogatekeepers]

Do you still use ChatGPT, and has your usage changed? Have you discovered any new AI products?

[@paulhuang2006]

I still use it, not as often as two months ago though.

[@nogatekeepers]

Same. I use it for blog post draft ideas and title names mostly now@@paulhuang2006

[@waymanharris1284]

Great video Wayne! Can't wait to see how the strongest AI companies leverage digital companions and integrate them into our daily lives. I'd love to see you do a video on technology addressing the loneliness epidemic. I think AI has reached a point where it could add value there.

[@nogatekeepers]

Thanks so much Wayman! That’s a really interesting topic idea. Let me noodle on that one some more…

[@erikjia3253]

Absolutely love your videos! Totally agree with you that these AI companies are going to need a moat to stay around

[@nogatekeepers]

Thanks so much Erik! Really appreciate the kind note! We are definitely in the early App Store era for AI…

[@paulhuang2006]

Wayne, I assume the video only refers Generative AI, right? Anyway, nice video as always, thank you.

[@nogatekeepers]

That is correct, and I’m referring to the startup ecosystem more than anything. Thanks for the kind note Paul!

[@paulhuang2006]

Thanks for the reply, I think the bubble probably will be smaller but still be there for some time as long as VCs are willing to feed the money@@nogatekeepers

[@nogatekeepers]

Makes sense. VCs are chasing some real traction and use cases with AI, unlike a lot of crypto@@paulhuang2006

[@paulhuang2006]

Got it, thanks.@@nogatekeepers

[@user-os5ps2os4m]

Sir how to create billion dollars startup from starch with AI

[@maxxpower3d6]

In this video: cope.