By Abdulkareem Haruna (Source: FORTUNE)/
Charlie Munger, the 99-year-old vice chairman of Berkshire Hathaway, controlled by Warren Buffett, is casting doubt on the growing frenzy surrounding artificial intelligence (AI) investments.
Despite the billions of dollars flooding into the AI sector, Munger believes it may be receiving more hype than it deserves.
During a recent appearance at the Zoomtopia conference hosted by Zoom, Munger, in an article published by FORTUNE, expressed his opinion on AI, highlighting its existence since the 1950s and stating that “old-fashioned intelligence works pretty well.”
Munger has consistently shown skepticism towards AI, questioning the extravagant predictions of its potential benefits. While recognizing the importance of breakthroughs in the AI field, he believes that the technology is being oversold. In previous statements, he refuted claims that AI could lead to a utopian society where diseases like cancer are eradicated and humans live well beyond 100 years. Munger sees an excess of inflated claims surrounding AI and considers it a mixed blessing.
Warren Buffett, chairman of Berkshire Hathaway, shares Munger’s sentiment in his lack of understanding of AI and concerns about its impact on society, particularly in relation to generative AI chatbot ChatGPT. However, Buffett acknowledges the advances made by generative AI as “incredible.”
Charlie Munger’s skepticism extends beyond AI as he scrutinizes the world of cryptocurrencies. At the Zoom event, Munger did not mince words when asked about his outlook on Bitcoin and other cryptocurrencies. He stated that Bitcoin was the “stupidest investment” he had come across and predicted that most crypto investments would eventually amount to nothing.
Munger has been an outspoken critic of cryptocurrencies for some time, previously referring to Bitcoin as “rat poison” and likening other cryptocurrencies to venereal diseases. He expressed regret at their invention, citing that those investing in cryptocurrencies are primarily driven by self-interest rather than the welfare of customers.
Warren Buffett also shares Munger’s skepticism towards Bitcoin, referring to it as a “gambling token.” JPMorgan CEO Jamie Dimon has famously compared cryptocurrency ownership to “owning a pet rock.”
The cryptocurrency market experienced a significant downturn in 2022, known as “Crypto Winter.” In a single day, over $200 billion was wiped from the market, leaving many investors at a loss. Experts predict that the aftermath of this event might last through 2023 and possibly into 2024. Adding to the turbulence, the collapse of crypto exchange FTX led speculators to question the future of the cryptocurrency market, with some drawing parallels to the “Lehman moment” of the traditional financial market.
While Bitcoin has somewhat recovered from its lowest point in 2022, with a current price just under $28,000, it remains far from its record high of nearly $69,000.
Charles Thomas Munger is an American businessman, investor, and philanthropist.
The Humanitarian Times 