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AI Bubble? It's Just LLMs, Says Hugging Face CEO
20 Nov, 2025
Summary
- AI bubble is specific to large language models, not AI overall.
- Specialized AI models will solve diverse problems in the future.
- AI investment is expanding beyond LLMs into new sectors.
The CEO of Hugging Face has suggested that the current excitement and investment surrounding artificial intelligence are primarily focused on large language models (LLMs), forming a bubble that may soon deflate. He contends that LLMs represent only a small fraction of AI's vast capabilities, with significant untapped potential in areas like biology, chemistry, and visual media.
This perspective highlights a shift towards specialized AI models, moving away from the idea of a single, universal AI solution. Such specialized models are expected to address diverse problems more effectively, aligning with predictions from research firms like Gartner.
Investment trends reflect this emerging focus, with substantial capital flowing into new AI ventures beyond LLMs, including those targeting engineering and manufacturing, signaling the dawn of AI's broader applications.
