Nobel laureate Paul Romer recently sounded the alarm on the rapid growth and confidence in artificial intelligence (AI), drawing parallels to the crypto bubble of two years ago. Speaking at the UBS Asian Investment Conference in Hong Kong, Romer urged caution, warning that the current rate of AI progress may not be sustainable.

AI's Future Uncertain

Romer highlighted the danger of assuming that AI's rapid advancements will continue indefinitely. He noted that recent breakthroughs like OpenAI's ChatGPT and xAI's Grok have sparked massive investment in AI infrastructure, but cautioned that the tech giants like Microsoft, Alibaba, and Nvidia, which became multitrillion-dollar companies as AI demand spiked, may not be able to sustain their growth.

Data Limitations

The former World Bank economist stressed that while scaling up computing is relatively easy, the availability of data is finite. This raises concerns about the long-term viability of AI's growth, which could lead to a market correction.

AI Coins' Market Performance

The market cap of AI and Big Data cryptos fell 0.58% on May 29 to $40.63 billion, with a 4% decline in trading volume to $2.67 billion. Despite AI's recent growth, meme coins have offered better returns on investment, according to a recent report by CoinGape Media.

Romer's Warning

Romer predicts that in two years, people may realize they overestimated AI's progress, likening the current enthusiasm to a bubble. However, the broader industry sentiments remain optimistic about AI coins' potential ahead.

The debate surrounding AI's future and the performance of AI coins continues, with Nobel laureate Paul Romer's warning serving as a cautionary note for investors.