tech
December 3, 2025
“We’re in an LLM bubble,” Hugging Face CEO says—but not an AI one
The risks of AI investment in manufacturing and other areas are less clear.
TL;DR
- Hugging Face CEO Clem Delangue believes there is a bubble in large language models (LLMs).
- He predicts the LLM bubble may burst next year.
- Delangue differentiates LLMs from other AI applications like those in biology, chemistry, image, and audio processing, which he sees as just beginning.
- He anticipates a future with a multiplicity of specialized AI models rather than one general-purpose model.
- Hugging Face serves as a repository for various AI models, including large ones and specialized fine-tuned variants.
- Research firm Gartner also predicts a shift towards specialized AI models.
- Significant investment is occurring in AI applications beyond LLMs, such as in engineering and manufacturing, with a new startup launching with over $6 billion in funding.
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