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Leading China VC Kai-Fu Lee warns an investor reckoning is coming for unprofitable AI companies [Fortune]
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A “reckoning” is coming soon for AI companies that fail to turn a profit as the new technology matures, Kai-Fu Lee, chairman and chief executive of Sinovation Ventures, said at the Fortune Innovation forum in Hong Kong on Wednesday. Lee said too many large language model (LLM) startups focus on striving for breakthrough advances and too little on commercializing their work. “A lot of the LLM companies out there are run by researchers who care only about making a great model,” he said in a conversation with Fortune editor-in-chief Alyson Shontell. “That science fair phase needs to end.” If there's one aspect the three leading U.S. megacap tech stocks all have in common, it's that they successfully monetized an emerging technology—Microsoft with the personal computer, Apple and Google with the smartphone. A former Google China president and himself a researcher in the field, Lee founded his own AI startup in March 2023. The firm, named 01.AI, was valued at more than $1 billion in
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