The world of generative artificial intelligence is rapidly evolving, sparking a gold rush of innovation and investment, and the current state and future potential of gen AI offer valuable insights for entrepreneurs and investors alike.

“There is a relatively small pool of individuals that really know how to build cutting-edge models, less than a thousand probably,” said Rob Toews (pictured), partner at Radical Ventures Investments Inc. “So, you want to be backing teams that have those capabilities and that expertise.”

Toews’ comments underscore the competitive nature of today’s AI industry, where access to such skilled individuals can provide a significant advantage. His analysis also suggests a potential bottleneck in the expansion and innovation within the AI field, as the limited pool of experts could constrain the pace at which new and groundbreaking AI technologies are developed and brought to market.

Toews spoke with Howie Xu, theCUBE panel host and AI and data executive, at the “Supercloud 5: The Battle for AI Supremacy” event, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the pivotal role of leadership in AI companies, as exemplified by the headline-making scene at OpenAI; the importance of having a skilled and knowledgeable team to drive innovation and success in AI startups; and the dynamic nature of the AI industry and its potential future developments.

Generative AI: A landscape in flux

The dramatic shifts that occurred within OpenAI over the past couple of weeks signal an important factor for organizations to consider moving forward, according to Toews. While the ultimate resolution was a lot less disruptive than some expected, it could be a possible indicator of things to come. Could this have ripple effects across the entire AI industry? Or could something more disruptive happen?

“I think if one of those alternate realities had played out, it would have totally turned the AI landscape upside down,” Toews said.

Toews’ analysis suggests that while the immediate crisis at OpenAI may have been addressed, it exposed underlying issues in the AI industry regarding dependency on key individuals and the importance of stable, visionary leadership in navigating the uncertain waters of technological advancement.

The diverse applications of AI and the varying skill sets required to excel in different segments of the AI landscape is critical. This insight is crucial for entrepreneurs looking to leverage AI in specific industries, where a deep understanding of the sector can be more valuable than technical AI expertise alone, according to Toews.

“At the application layer, the skillset looks very different,” he said. “Companies that are building applications and products on top of other models, whether it’s an open-source model or OpenAI’s model or something else, I think in that case, much more important than differentiated AI expertise is domain expertise and subject matter knowledge.”

His insights are particularly relevant for entrepreneurs and innovators looking to make a mark in the field of AI, especially in specialized industries, such as healthcare, finance and cybersecurity, where regulatory requirements and specific customer needs are front and center. This insight is particularly poignant for entrepreneurs aiming to leverage AI in these specialized fields, where domain expertise can significantly enhance the effectiveness and relevance of AI solutions, Toews added.

Assessing the future of generative AI, Toews acknowledged its transformative nature while also noting the current state of the industry, which he likens to a bubble.

“I do think we’re in a bubble. There is a lot of irrational exuberance in the world of AI right now,” he said. “There are deals getting done at valuations that I don’t think make sense.”

However, he also recognized the powerful and transformative potential of AI, comparing its impact to that of the internet or electricity. This duality captures the excitement and caution that characterizes the AI gold rush.

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of the “Supercloud 5: The Battle for AI Supremacy” event:

Photo: SiliconANGLE