AI Hype Is Jumping The (Virtual) Shark

Fermi’s $14.8 billion IPO and Sam Altman’s absurd claims about OpenAI’s future power needs are proof that the AI era has entered the silly season.

Pets.com sponsored a balloon during the 1999 Macy’s Thanksgiving Day Parade. About a year later, the company declared bankruptcy. Credit: fandom.com

In late 1999, Pets.com was riding high. The company sponsored a 36-foot-high balloon in the Macy’s Thanksgiving Day Parade. A few weeks later, it sponsored a TV ad during the 2000 Super Bowl. In February 2000, the company went public and raised about $82 million. Nine months later, Pets.com declared bankruptcy.

Among the many casualties of the dot-com bubble, Pets.com stands out for its rapid rise and fall. Investopedia explains that the problem with the company’s business plan was that pet supplies “could easily be found at the nearest grocery or pet store.”

Before going further, let me be clear: AI ain’t dog food. And OpenAI ain’t Pets.com.

That said, the hype about AI — and the rhetoric about how electricity generators will slake its massive thirst for power — has jumped the shark. And when it comes to talking about power, the shark-jumper-in-chief is, without a doubt, OpenAI’s Sam Altman. Here’s a skeptical deep dive into Altman’s claims about OpenAI’s power needs and this week’s IPO by Rick Perry’s electricity startup, Fermi Inc.