CZ: AI Will Grow Exponentially, But Most Companies Will Go Bankrupt
Binance founder CZ stated that AI will exist long-term and grow exponentially, but most AI companies will face bankruptcy due to the current oversupply.
Even survivors will experience significant price volatility, while new survivors will emerge, consistent with the development patterns of any emerging industry.
Market mechanisms are accelerating AI investors' withdrawal from generalized concept companies, shifting towards leading players with actual barriers; event-driven funds are flowing out of overvalued early projects; mature AI infrastructure and application layer companies will benefit, while many purely conceptual or high-burn AI startups will face pressure.
Source: Public Information
ABAB AI Insight
CZ has previously experienced multiple bubbles and reshuffles in the crypto industry, and his judgment on AI continues his calm observation of emerging technology cycles, emphasizing the coexistence of long-term technological trends and short-term brutal competition.
In terms of capital pathways, the market is concentrating resources from a vast number of AI companies to a few leading ones with data, computing power, distribution, or commercialization capabilities through fierce competition, ultimately forming an oligopoly.
Similar to how a few companies dominated after the internet bubble and how crypto evolved from a multitude of coins to a concentration of leaders; the current AI industry is transitioning from frenzied expansion to brutal reshuffling and structural optimization.
Essentially, it is about capital concentration, where the market elimination mechanism concentrates industry resources towards the eventual survivors. The mechanism is that while the technological dividend is significant, oversupply will inevitably lead to the exit of most participants, and only companies that build real moats can capture value long-term.
ABAB News · Law of Cognition
When technology grows exponentially, the number of companies will decrease exponentially.
The harsh truth of emerging industries: most players are cannon fodder.
The ones who truly make big money are not the earliest entrants, but the few who survive until the end.