Binance founder Changpeng Zhao said that the AI sector will experience exponential growth in the coming years, but most companies in the market will not survive. In a statement made on the social media platform X, Zhao highlighted the rapid expansion in the AI field, stating that the sector will undergo a natural selection process.
According to Zhao, a leading figure in the cryptocurrency sector, the vast majority of AI startups currently operating in the market will eventually fail. Zhao states that only a limited number of companies will be able to survive in the long term, and even those that do manage to survive may experience significant price fluctuations in their stock.
Despite this, the renowned entrepreneur argued that the AI sector continues to have growth potential. Zhao stated that with the development of new technologies, new companies will constantly emerge, and existing players may be replaced by different firms over time. According to him, this situation is not unique to AI; it has similarly occurred in the past in emerging sectors such as the internet, mobile technology, and cryptocurrencies.
The rapid increase in investments in artificial intelligence in recent years is noteworthy. Large technology companies are competing in the sector with billions of dollars in investments, while numerous startups are also entering the market to develop new products and services. However, experts say that due to intense competition and high costs, many companies may struggle to create sustainable business models.
Analysts note that Zhao’s assessments align with the current landscape of technology markets. While there is broad consensus that artificial intelligence will transform the economy in the long term, uncertainty remains regarding which companies will achieve lasting success. Therefore, investors are advised to act with due consideration for the high volatility and risks in the sector.
This is not investment advice.
