Palantir's Peter Thiel Says It's 'Very Strange' That Most Money In AI Is Being Made By Only One Company: '…Which Silicon Valley Doesn't Even Know Much About Anymore'

Last week, while appearing at the Aspen Ideas Festival,Palantir Technologies PLTRco-founder Peter Thiel shared his insights on artificial intelligence, Nvidia Corp. NVDA, and ChatGPT-parent OpenAI.What Happened: During the festival, Thiel drew parallels between the dot-com bubble of ’99 and the current state of AI, stating that thepeak of the bubble wasalso the peak of clarity, as people realized the internetwas going to replace theold economy.He highlighted the difficulty of making specific investments during the dot-com bubble, using Amazon.com Inc.’s stock as an example. Thiel noted that even though Amazon’s stock was considered a “no-brainer” investment, it took a decade for it to return to its ’99 highs.See Also:AI Adoption A ‘Do Or Die’ Moment For Companies, Says SandboxAQ CEO: ‘There’s Going To Be Winners And Losers’He then went on to say that currently,80-85% of the money inAI is being made byone company,Nvidia. He described this as a “very strange” situation, as the majority of the profits are being made at the hardware layer, an area “Silicon Valley doesn't even know much about anymore.”Subscribe to theBenzinga Tech Trends newsletterto get all the latest tech developments delivered to your inbox.Why It Matters: Last week it was reported thatPalantirpartnered with Voyager Space to strengthen Voyager's defense segment by leveraging AI to analyze and improve flight and testing data for solid fuel thrusters.Meanwhile, Nvidia briefly became the most valuable company on the planet when it reached a market capitalization of $3.46 trillion in June. At the time of writing, the chip giant was at number three on the list of the world’s most valuable companies with a market capitalization of $3.038 trillion.Previously, Dan Ives, an analyst atWedbush Securities, predicted that Nvidia’s market cap could soar to $4 trillion. He also described Palantir as the “purest AI name in the market in terms of use cases.”Check out more of Benzinga’s Consumer Tech coverage byfollowing this link.Read Next:Apple Rejects Meta’s AI Integration Proposal, Ex-Employee Accuses iPhone-Maker Of Chemical Exposure And More: This Week In AppleverseDisclaimer:This content was partially produced with the help ofBenzinga Neuroand was reviewed and published by Benzinga editors.Photo courtesy: Wikimedia