Top VC: ‘Hype Cycles Are Good’ for AI, But Be Careful Not to Buy at the Top
Jim Adler of Toyota Ventures, in a recent interview with Fortune reporter Allie Garfinkle at SXSW, offered a bullish take on the current artificial intelligence boom, suggesting that the industry thrives on cyclical periods of elevated excitement.
Adler expressed a positive outlook on the present state of AI, stating that periods of rapid growth and interest—often described as “hype cycles”—ultimately benefit the technology sector. These cycles, he explained, drive innovation and investment, which fuels further development.
However, Adler cautioned investors to exercise prudence, saying, “just don’t buy at the top.” While acknowledging the potential of the field, he emphasized the importance of careful analysis and strategic decision-making to avoid overvaluation during the peak of the hype cycle.
The conversation highlighted the interplay between investor sentiment and technological advancement, with Adler’s insights suggesting the industry’s evolution is, in part, shaped by these dynamic periods of intense interest.
