---
title: "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'"
description: "Palantir co-founder Peter Thiel compared the current AI boom to the dot-com bubble, highlighting Nvidia's dominance in AI profits. He noted that most of the money in AI is being made by one company, w"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/207656260.md"
published_at: "2024-07-01T09:42:11.000Z"
---

# 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'

> Palantir co-founder Peter Thiel compared the current AI boom to the dot-com bubble, highlighting Nvidia's dominance in AI profits. He noted that most of the money in AI is being made by one company, which Silicon Valley doesn't know much about anymore. Thiel's insights emphasize the challenges of investing in AI and draw parallels to the dot-com era.

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.”

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**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 at**Wedbush 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 by**following this link**.*

*Read Next:Apple Rejects Meta’s AI Integration Proposal, Ex-Employee Accuses iPhone-Maker Of Chemical Exposure And More: This Week In Appleverse*

***Disclaimer:****This content was partially produced with the help ofBenzinga Neuroand was reviewed and published by Benzinga editors.*

*Photo courtesy: Wikimedia*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
