Demis Hassabis, the co-founder and CEO of Google DeepMind, has sounded a cautionary note, warning that the present AI startup landscape is primed to create a bubble. A significant number of early-stage AI startups have managed to secure substantial funding, with valuations soaring into the tens of billions of dollars, even though they have yet to establish any tangible business operations. Hassabis points out that this trend is unsustainable. He stressed that the hefty investments poured into AI infrastructure by major tech firms are underpinned by well-developed business models and should not be lumped together with the scenario facing startups. While the AI sector may appear overvalued in the near term, he believes that, in the medium to long run, the market still falls short of fully appreciating its true potential. In the meantime, Howard Marks from Oaktree Capital Management has also expressed skepticism regarding the influx of capital into AI startups that lack a proven track record. Hassabis urges investors to maintain a rational approach and not let the excitement surrounding the AI boom cloud their market judgment.