Joe Lonsdale, the founder of venture firm 8VC, says that top executives in artificial intelligence are underselling the resources they need to meet their ambitious goals.
These companies are ” afraid to scare their investors, and so they are telling them they need a lot less capital, a lot less energy than they know they actually do,” Lonsdale, who previously co-founded Palantir
, told CNBC’s “Squawk Box” on Thursday.
This dynamic will create a continuous cycle where executives look for more capital and energy every three to six months to power their initiatives, Lonsdale said.
Tech giants have ramped up spending on AI in recent months to build out infrastructure and lure top talent. Some skeptics worry that a bubble is forming and that companies are overspending with no clear path to a return on investment.
