{"id":141899,"date":"2025-11-18T22:16:05","date_gmt":"2025-11-18T22:16:05","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/141899\/"},"modified":"2025-11-18T22:16:05","modified_gmt":"2025-11-18T22:16:05","slug":"hugging-face-ceo-says-were-in-an-llm-bubble-not-an-ai-bubble","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/141899\/","title":{"rendered":"Hugging Face CEO says we’re in an ‘LLM bubble,’ not an AI bubble"},"content":{"rendered":"

Hugging Face<\/a> co-founder and CEO Clem Delangue says we\u2019re not in an AI bubble, but an \u201cLLM bubble\u201d \u2014 and it may be poised to pop. At an Axios event on Tuesday, the entrepreneur behind the popular AI platform and community site agreed that bubble talk is today\u2019s \u201ctrillion dollar question,\u201d but said he doesn\u2019t believe AI\u2019s future is at risk if the bubble bursts.<\/p>\n

Instead, as Delangue sees it, it\u2019s large language models (LLMs) \u2014 like those powering ChatGPT, Gemini, and other chatbots \u2014 are receiving outsized attention and that attention may not last.<\/p>\n

\u201cI think we\u2019re in an LLM bubble, and I think the LLM bubble might be bursting next year,\u201d explained Delangue. \u201cBut \u2018LLM\u2019 is just a subset of AI when it comes to applying AI to biology, chemistry, image, audio, [and] video. I think we\u2019re at the beginning of it, and we\u2019ll see much more in the next few years,\u201d he noted.<\/p>\n

One issue, he argued, is that LLMs aren\u2019t the right solution for everything, and smaller, more specialized models will see increased adoption in the future. <\/p>\n

\u201cI think all the attention, all the focus, all the money, is concentrated into this idea that you can build one model through a bunch of compute and that is going to solve all problems for all companies and all people,\u201d said Delangue. \u201cI think the reality is that you\u2019ll see in the next few months, next few years, kind of like a multiplicity of models that are more customized, specialized, that are going to solve different, different problems.\u201d<\/p>\n

As an example, he suggested the use case of a banking customer chatbot. <\/p>\n

\u201cYou don\u2019t need it to tell you about the meaning of life, right? You can use a smaller, more specialized model that is going to be cheaper, that is going to be faster, that maybe you\u2019re going to be able to run on your infrastructure as an enterprise, and I think that is the future of AI,\u201d Delangue pointed out. <\/p>\n

Techcrunch event<\/p>\n

\n\t\t\t\t\t\t\t\t\tSan Francisco
\n\t\t\t\t\t\t\t\t\t\t\t\t\t|
\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026\n\t\t\t\t\t\t\t<\/p>\n

The Hugging Face founder admitted that an LLM bubble bursting could impact his company to some extent, but noted that the AI industry is so big that it\u2019s already diversified. That means even if a portion of the industry is overvalued, like LLMs, it\u2019s not going to have a massive impact on the AI field itself or his business.<\/p>\n

Plus, he noted, Hugging Face still has half of the $400 million it has raised in the bank. This cautious approach to spending represents a different strategy from what other AI companies<\/a> are doing these days<\/a>, especially in the LLM space.<\/p>\n

\u201cIn AI standards, that\u2019s called profitability because the other guys \u2014 it\u2019s not hundreds of millions that they\u2019re spending. It\u2019s obviously billions of dollars,\u201d he said. <\/p>\n

By comparison, Hugging Face is taking a more capital-efficient approach. <\/p>\n

\u201cI think a lot of people right now are rushing \u2014 or maybe even panicking \u2014 and taking a really short-term approach to things. I\u2019ve been in AI for 15 years now, so I\u2019ve seen some of the cycles,\u201d Delangue added. \u201cAnd so we\u2019re learning from that and trying to build a long-term, sustainable, impactful company for the world.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Hugging Face co-founder and CEO Clem Delangue says we\u2019re not in an AI bubble, but an \u201cLLM bubble\u201d…\n","protected":false},"author":2,"featured_media":141900,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,67611,363,364,42110,11753,111,139,69,145],"class_list":{"0":"post-141899","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-bubble","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-bubble","13":"tag-hugging-face","14":"tag-new-zealand","15":"tag-newzealand","16":"tag-nz","17":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/141899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=141899"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/141899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/141900"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=141899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=141899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=141899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}