The LLM Space Is Richly Valued Thanks To The Fed
When a Central Bank grows its balance sheet by $5 Trillion over two years, thus enabling our fractional reserve banking system to grow M2 by $7 Trillion over the same period, that excess money is bound to create bubbles. The LLM/Generative AI bubble is one such example. The most frustrating part of this bubble is that all things related to Advanced Automation are being conflated as “AI”, and all things “AI” are being conflated with Generative AI. The only new thing here is the advent of Large Language Models (LLMs). Presently, Generative AI is at the building stage.
Below we took a cut at LLM-related revenue and related valuations in an effort to put numbers to the “AI” hysteria. 49x Revenue is expensive by any measure.
