Joe Lonsdale, the co-founder of Palantir Technologies Inc. (NASDAQ:PLTR) said the top brass in the artificial intelligence (AI) industry are underestimating the resources required to achieve their ambitious targets.

Continuous Cycle Every 3-6 Months

Lonsdale, who is also the founder of venture firm 8VC, warned about the creation of “a continuous cycle where executives look for more capital and energy every three to six months to power their initiatives”.

The Palantir co-founder on CNBC’s “Squawk Box” on Thursday, stated that the AI companies are “afraid to scare their investor,” hence downplaying their needs.

He added, “If anything, I think we’re underestimating how much investment is going to go into this space and how much we’re going to need.”

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