Zoho founder Sridhar Vembu recently warned about the growing hype around artificial intelligence (AI), saying that many corporate customers and analysts remain unconvinced. In a post on microblogging site X (formerly Twitter), Vembu wrote: “One fact about the recent AI hype is that corporate customers and analysts are not terribly excited. They are in a ‘prove it to me’ mode, as they should be. I am in the camp that overhyping anything is a bad idea. I am personally enthusiastic about some technologies, but I will not overhype them.”
He pointed to two recent developments as signs that the AI bubble might be deflating – Microsoft cancelling its US data center leases amid oversupply concerns and CEO Satya Nadella cautioning against overly optimistic projections about AI, in particular about AGI.
Here’s what Sridhar Vembu wrote on X
One fact about the recent AI hype is that corporate customers and analysts are not terribly excited. They are in a “prove it to me” mode, as they should be.
I am in the camp that overhyping anything is a bad idea. I am personally enthusiastic about some technologies but I will not overhype them.
There are some warning signs of the AI bubble deflating:
Microsoft reportedly cancels US data center leases amid oversupply concerns
Satya Nadella cautions against overly optimistic projections about AI, in particular about AGI (AI that is super human in every dimension).
When a user asked whether he has “tried using o3 or o1 or grok3 for internal programming/coding instead of humans”, Vembu wrote “Yes we are using or trialing a lot of them. What are you building with them? Beyond getting you a big headstart in a project, how are you using them?”.