Peter Thiel: AI Wont End the Stagnation in Tech

Billionaire and co-founder of PayPal, Peter Thiel, perceives artificial intelligence as a transformative force comparable to the Internet at the end of the 1990s. However, he believes that this might not be sufficient to end the «stagnation» in technological progress.

In a podcast titled «Interesting Times» hosted by The New York Times, Thiel shared his thoughts about the potential impact of AI, stating, «It will be more than just a burger, but less than a complete transformation of our society.»

In a 2011 essay, the PayPal co-founder argued that technological advancement has slowed since the 1970s in sectors like energy and transportation. This deceleration has contributed to an overall stagnation, despite advancements in areas such as computers and the Internet.

Thiel reiterated that he still «generally believes in the stagnation thesis» and that without AI, «nothing really happens.» He has invested in AI-focused companies, including OpenAI, Palantir, and DeepMind before they were acquired by Google.

According to Thiel, while AI «might be sufficient to create some great companies» and boost GDP, he is «unsure if that is enough to truly end stagnation.»

The investor emphasized his desire to see «much more» risk-taking from companies in endeavors like space travel to Mars or developing dementia treatments. «I still think we should try AI, and the alternative is just complete stagnation,» he remarked.

Meanwhile, a previously released bulletin from Fast Company suggests that the first «killer app» for generative AI will be programming. Currently, around half of all applications of large language models are focused on writing computer code.