AI"s Bar Mitzvah Moment: From Hype & Hope to Business Questions!
In a world where AI enters almost every conversation, it takes effort to remember that its breakout moment was less than four years ago, when, on November 30, 2022, ChatGPT was unveiled to the public. I know! I know! Artificial intelligence has been around a lot longer, with a history tracing back to the birth of the computer age. I am old enough to remember IBM's Deep Blue, a machine powerful…
Just under four years ago, on November 30, 2022, ChatGPT burst onto the scene and introduced the world to the extraordinary capabilities of artificial intelligence. While AI has existed for much longer, the impact of ChatGPT and subsequent developments has been nothing short of explosive. Nvidia, a chip maker specializing in AI, has been the most successful company during this period, with its market capitalization increasing more than any other company from 2022 to 2025.
In fact, the Mag Seven, a group of companies with significant AI investments, accounted for 45% of the overall increase in market capitalization for all US stocks during the same period.
The effects of AI are not limited to the business world, as it has infiltrated people's personal and work lives in various ways. Some have experienced awe at the power of AI to perform tasks previously requiring human labor with ease and efficiency, while others have felt a sense of dread at the prospect of being made obsolete by an AI agent. This shift in public perception of AI has led to a more critical and skeptical outlook, as evidenced by graduation speeches at US colleges in 2026 being met with boos from students.
The debate surrounding AI has become muddled and contradictory, with advocates praising its potential market while skeptics question the massive upfront investments required. Both sides often cherry-pick data to support their respective positions, making it difficult to discern the truth. The goal of this article is not to prove one side right or wrong, but rather to examine AI as a business, acknowledging its groundbreaking nature while also evaluating it based on the traditional principles of converting potential into products, revenues, and profitability.
Written by urgent.news from Musings on Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
