Billionaire investor Mark Cuban has doubled down on his belief that AI will become a defining line between companies that adapt and those that disappear, drawing parallels to how the media industry once dismissed streaming and HDTV.



<h2>Cuban Says AI Skepticism Echoes Early Streaming Doubts</h2>



Over the weekend, the billionaire entrepreneur said the future will belong to &#34;two types of companies — those that are great at AI, and those that used to be in business,&#34; pushing back against critics who argue generative AI is already overrated.



Responding to a user questioning whether tech leaders exaggerate AI's promise, Cuban said similar skepticism greeted early streaming technology.



He recalled that initial audio streaming was poor, video streams were &#34;postage stamp&#34; sized and bandwidth constraints convinced many media executives the model would never scale.



See Also: Mark Cuban Says ‘This Is The Job-Hunting Advice I Give My Own Kids In The Age Of AI’



<h2>How HDTV Went From Mocked Concept To Industry Standard</h2>



Cuban pointed to his experience launching HDNet and HDNet Movies in 2001, describing how broadcasters and cable companies openly doubted high-definition television.



He said executives pulled out analog TVs during meetings and insisted consumers could not see a meaningful difference, while HDTV sets at the time cost nearly $20,000.



&#34;People laughed,&#34; Cuban said, noting that those same TVs now cost a fraction of that price and HDTV has become ubiquitous.



<h2>Why Cuban Believes AI Will Follow The Same Path</h2>



Cuban argued that today's criticism of AI focuses too heavily on its current limitations rather than its trajectory. He said that AI is not a replacement for human intelligence but a tool that amplifies it.



&#34;AI isn't smart,&#34; Cuban said, adding that it &#34;makes smart people smarter.&#34;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>It used to be people laughed at streaming. First it was only low quality audio. The. When video came along it was the size of a postage stamp. Then there wasn't enough bandwidth to scale. To everyone who made money from media , it sucked and was going no where When I… https://t.co/RBiFNX71kP— Mark Cuban (@mcuban) December 14, 2025</blockquote>
</div></figure>



Through Microsolutions, Cuban helped introduce local area networks, then went on to create Audionet as an early streaming venture and later HDNet, among the first high-definition television networks.



More recently, he launched Cost Plus Drugs, a company that has reshaped the pricing and sales of prescription medicines.



<h2>Kevin O'Leary Calls AI A Competitive Weapon For Small Businesses</h2>



Cuban's fellow panelists on the reality TV show &#34;Shark Tank,&#34; Kevin O'Leary, previously said that AI is now among the most strategic investments for small business owners, describing AI-driven customer service bots as a powerful competitive advantage for growth.



O'Leary has also said the biggest risk to the AI boom is not hype or lofty valuations, but a looming shortage of electricity.



Read Next:



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<li>Billionaire Mark Cuban Says If You Want To Get Rich, Give Things Up—Drink Water Instead Of Coffee, Eat Mac &amp; Cheese Not McDonald’s, ‘Save Every Penny’</li>
</ul>



Photo: Kathy Hutchins On Shutterstock.com



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Mark Cuban warns that companies dismissing AI risk becoming obsolete, likening current skepticism to early doubts about streaming and HDTV. He argues AI will differentiate successful businesses from those that fail, emphasizing AI's role in amplifying human intelligence. Fellow 'Shark Tank' panelist Kevin O'Leary highlights AI as a competitive advantage for small businesses, despite concerns about electricity shortages.

- Mark Cuban asserts that AI will distinguish successful companies from those that fail, likening current skepticism to early doubts about streaming technology.  
- He recalls how initial streaming faced criticism for poor quality and limited bandwidth, yet has since become integral to media.  
- Cuban believes that AI, while not a replacement for human intelligence, enhances it, and he emphasizes the importance of recognizing its potential rather than its current limitations.

Mark Cuban Draws Line For Survival Of Businesses In The AI Era, Cites His Streaming Experiences To Make A Point About Those Laughing At The Tech Today