Zoho founder Sridhar Vembu has shared a message from Oracle co-founder Larry Ellison on the future of artificial intelligence (AI), saying that AI is becoming a commodity and that companies will need to build value around it. Sridhar Vembu reposted a video in which Ellison argued that most leading AI models are trained on similar public internet data, making it harder for any one model to maintain a lasting advantage. Sharing the video on X, Sridhar Vembu wrote: “AI is rapidly commoditizing. The value shifts to what is built around it.”
Sridhar Vembu agrees with Larry Ellison on AI’s future
In the video, Larry Ellison said that major AI models, including ChatGPT and others, are largely trained on the same publicly available information from the internet.“AI is rapidly commoditizing because most models are trained on the same public internet data,” Ellison said. He added that access to private and exclusive datasets could become the key factor that separates companies in the future.“The real competitive edge isn’t the model anymore — it’s access to exclusive, proprietary datasets,” Ellison said.The comments reflect a growing view among some technology leaders that AI models themselves may become less of a differentiator as competing systems continue to improve. Instead, companies may increasingly focus on unique data, software products, customer relationships and business applications built on top of AI technology.
Sridhar Vembu calls AI an investment bubble
Recently, Vembu described the AI boom as “clearly an investment bubble” while responding to a viral post on X that questioned the financial structure behind major AI investments. The Zoho founder said large technology waves often create financial bubbles, adding that the current AI cycle may be “the biggest bubble yet.” His remarks came in response to a post by the account Bull Theory, which claimed that a large part of the AI industry’s growth is being driven by accounting structures and investment loops involving major cloud companies and AI startups. Responding to the post, Sridhar Vembu wrote: “AI is clearly an investment bubble”. “The justification is that all massive tech waves spark financial bubbles so saying it is a bubble doesn’t negate the tech itself. And this one is the biggest bubble yet,” he stated, adding “How to navigate this without losing one’s shirt is the key.”
