Vinod Khosla: Most AI Investments Will Lose Money as Market Enters ‘Greed’ Cycle

Early OpenAI investor Vinod Khosla warned that most investments in artificial intelligence will lose money, particularly as more investors jump into the market, funding more startups. But he said some companies would grow to be worth hundreds of billions—and eventually trillions—of dollars and make up for the failures.

“More money will be made than lost because a few outliers will give disproportionate returns,” said Khosla, founder of Khosla Ventures, at The Information’s AI Agenda Live conference in San Francisco Thursday. “Right now we’re in the greed cycle of investing because people see the momentum that’s been established in the market caps.”