Sridhar Vembu, chief scientist at Indian SaaS major Zoho Corporation, believes the current boom around artificial intelligence (AI) bears clear parallels with the dot-com bubble of the late 1990s. He argues that the hype is beginning to cool and that the real value will emerge only once the frenzy subsides.
Vembu pointed out that “two, three-trillion-dollar investment commitments” are rushing into AI despite many companies lacking even revenue—let alone profit—to warrant such valuations. He noted signs of a cooling technology-sector environment in the United States, suggesting that the current phase of exuberance may be giving way to a more disciplined era.
He explained that a box-office analogy applies: “The internet, we had a dot-com bust. Only after that, the internet really took off. So first we have to cool the hype in anything.”
Despite his caution, Vembu remains bullish on the long-term potential of AI. He emphasized that his company is investing in AI with a long-haul view rather than chasing short-term headlines. “But still, the technology, there is a lot of valuable things you can do with technology. We are doing it. … But it’s a long-haul effort.”
His comments serve as a reminder that while investor and corporate focus on AI is intense, the pathway from hype to value is rarely smooth. The cooling phase may weed out weaker ideas, setting the stage for meaningful deployment and business-model clarity ahead.
Leave A Comment