OpenAI CEO Sam Altman has poked fun at Elon Musk’s AI chatbot Grok. In a conversation with The Verge and other reporters, Altman said “You will definitely see some companies go make Japanese anime sex bots”, adding that OpenAI wants to make useful apps and not exploit ‘those in fragile mental states.’

Sam Altman: AI is in a bubble

During the conversation, Altman said that we are in an AI bubble. He said: “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes”, adding “Is AI the most important thing to happen in a very long time? My opinion is also yes.”He also compared the market reaction to AI to be similar to that of dot-com bubble in the 90s. “When bubbles happen”, Sam Altman said “smart people get overexcited about a kernel of truth. If you look at most of the bubbles in history, like the tech bubble, there was a real thing. Tech was really important. The internet was a really big deal. People got overexcited.”

Sam Altman’s warning for startups

He further issued a warning for the startup community saying that given the present frenzy of investment in AI ‘someone’s gonna get burned’. Altman emphasised that the frenzy of investment and sky-high valuations is unsustainable. “Someone is going to lose a phenomenal amount of money. We don’t know who, and a lot of people are going to make a phenomenal amount of money,” Altman said. “My personal belief, although I may turn out to be wrong, is that, on the whole, this would be a huge net win for the economy.”“You should expect OpenAI to spend trillions of dollars on data center construction in the not