Is AI overhyped because everybody wants to talk about it, or is it genuinely here to stay? Billionaire Philippe Laffont, founder of Coatue Management, tackled this question during an interview with David Rubenstein at the Bloomberg Invest Summit in New York.

“Listen, short run, it’s true that the mentions of AI in every TV and written form is very high,” Laffont began. He drew a parallel with his investment in Apple back in 2009, saying: “I remember when I invested in Apple… for years people told me, ‘Why are you invested in Apple? Everybody talks about Apple.’ And obviously it had an incredible run.” Laffont believes that widespread discussion can sometimes be a positive indicator rather than a sign of overhype.

When asked about the best way to invest in AI, whether to back established giants or emerging startups, Laffont shared his conflicted views.

“The history of technology seems to be that the big get bigger, but also sometimes out of nowhere, the new company gets created like Facebook or TikTok,” he noted. According to Laffont, both existing companies and new entrants could become the next big winners in the AI space, although the emergence of significant new players is rare.

Looking beyond AI, Laffont was asked about the next big technology wave. He suggested looking deeper into the components that support AI.

“If you peel the onion of AI and you think about all the building blocks necessary, you might stumble on real estate with data centers or utilities with power. I find the power is really interesting,” he explained.

Laffont also speculated on the future of AI, seeing a world where artificial intelligence integrates with robotics.

“AI is sort of going to be this amazing sort of artificial brain. What I wonder is what happens when you put that brain inside of a robot and we humans need to then live side by side with humanoids,” he mused. This potential future, according to Laffont, could become reality in about 15 years, though estimates vary widely.

With Coatue Management, Laffont is keen on exploring both current and emerging technologies, always on the lookout for the next significant breakthrough. His insights suggest a balanced approach to AI investments and an eye towards the innovations that will follow.

Featured image: Credit: Bloomberg