As investors scrutinize whether the bubble in the artificial intelligence field is about to burst, Bill Gates warned that some highly valued artificial intelligence companies may be eliminated in the "highly competitive" artificial intelligence industry. "Artificial intelligence is the most important development area at the moment." Against the backdrop of a surge in corporate capital expenditures and multiple circular transactions causing market uneasiness, the Microsoft founder and philanthropist said in an interview with CNBC reporter Tanya Blair during Abu Dhabi Financial Week.
Bill Gates was interviewed by CNBC during Abu Dhabi Financial Week. Image source: CNBC
"Does this mean that all high-valuation related companies can become winners? The answer is no, this industry will usher in high competition." Gates said in an interview on Monday.
"Artificial intelligence is only a bubble at certain levels - not all such valuations can continue to rise, and some will fall back." He also pointed out that "artificial intelligence is a far-reaching technology that will reshape the world, there is no doubt about it."
The valuations of many artificial intelligence companies far exceed the market average. Palantir and Tesla, for example, both trade at well over 200 times earnings, while the average price-to-earnings ratio for S&P 500 companies is only about 25 times.
Global stock markets fell in November as fears of a bubble bursting grew.
Gates said, "A considerable number of these companies may not be able to maintain their current market value in the future."
Despite the hype in some parts of the AI industry, Gates believes that AI will fundamentally improve human life. "Is this technology significant, real and reliable, and can it bring about the many benefits we are working to promote in the fields of health care, education, agriculture and more? The answer is yes, and no one should have the slightest doubt about this."
Earlier this week, the Gates Foundation joined other international leaders and philanthropists in committing $1.9 billion to fight polio, funding that will provide vaccines to millions of children and strengthen health systems to fight other preventable diseases.
Gates predicts that next year will be a year of significant progress in global health.
"We can make full use of these newly acquired valuable committed funds and ensure that they are used efficiently. Next year, we will pilot a large number of artificial intelligence tools, such as virtual doctors (which can support various African dialects), agricultural consultants... Most of the population in Africa are small farmers, and their production efficiency is currently extremely low." He said.
"We want to significantly improve their productivity, and we think it's achievable," Gates added.