Why the vector database hype was a dangerous trap for investors

So can you just talk us through a little bit your view on on how infrastructure and application are playing out when you're looking at AI?

16:17 / 16:56

you can still build amazing companies. So can you just talk us through a little bit your view on on how infrastructure and application are playing out when you're looking at AI?

Yeah. I think the very tricky thing is to make really generalizable comments about both layers. So if I start with infrastructure, one category that was very hot two, three year years ago was vector databases. And at the time, it was obvious because of where we were in the cycle that all of the pure play vector databases were gonna see incredible growth. And it would have been easy at the time to extrapolate that growth into the future with, like, really bullish assumptions.

About this clip

Akash Bajwa explains the challenge of evaluating AI infrastructure vs applications, using vector databases as a cautionary tale. He warns against extrapolating short-term growth in hot categories like vector databases into overly bullish long-term assumptions, highlighting how easy it is to get caught up in cycle-driven hype.

Why this clip

Provides a specific, timely example of how investors can be misled by early growth signals in trendy AI infrastructure categories.

16:17 - 16:5638smarket insight

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What they said next

Why AI apps will dominate over infrastructure in the next wave

18:45 - 43s · market insight

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