tech
“We’re in an LLM bubble,” Hugging Face CEO says—but not an AI one
The risks of AI investment in manufacturing and other areas are less clear.

TL;DR
- Hugging Face CEO Clem Delangue believes there is a bubble specifically within large language models (LLMs).
- He predicts the LLM bubble may be bursting next year.
- Delangue distinguishes LLMs as a subset of AI, with other AI applications in fields like biology, chemistry, and image processing being at the beginning of their growth.
- He anticipates a future with a multiplicity of customized and specialized AI models rather than a single general-purpose model.
- Hugging Face functions as a repository for both large models and specialized, fine-tuned variants.
- Research firm Gartner also predicts a shift towards specialized models for business workflows.
- Significant investment is occurring in other AI applications, such as a new startup with over $6 billion in funding focused on engineering and manufacturing.