Currently, AI hype is at its peak, according to former TikTok CEO Kevin Mayer.

• The hype surrounding artificial intelligence has reached a peak, according to Kevin Mayer, the former TikTok CEO and co-CEO of Candle Media.
• Since the launch of OpenAI's ChatGPT in November 2022, there has been growing concern among regulators and tech leaders about the risks associated with advanced AI systems.
• Valuations have increased significantly in some cases, generating buzz from investors.

The hype around artificial intelligence has reached a peak, with company valuations appearing "astronomical," according to former TikTok CEO and Candle Media co-CEO Kevin Mayer.

At the VivaTech conference in Paris on Friday, he stated to CNBC's Karen Tso that AI has inherent worth, as demonstrated by previous advancements such as the metaverse and Blockchain. However, he cautioned about an impending "stabilization" of valuations.

The hype cycle for AI has been dramatic, but its capabilities, which are yet to be seen, are highly valuable, according to Mayer.

"We can expect a surge in hype surrounding AI, with valuations soaring and widespread discussions about its potential to disrupt various aspects of our economy and personal lives."

Since the launch of OpenAI's ChatGPT in November 2022, there has been growing concern among regulators and tech leaders about the risks associated with advanced AI systems. However, the technology has also generated excitement from investors, resulting in higher valuations for some companies. Companies such as OpenAI, Anthropic, Cohere, and Mistral have received significant funding from venture capitalists, as well as attention and investment from large tech firms like Microsoft.

Some notable figures have endorsed the technology and its growing popularity. JPMorgan Chase CEO Jamie Dimon is among them, stating in February that AI is not just a fleeting trend and is much more significant than language models like those used in ChatGPT. He also compared the current situation to the tech bubble that occurred at the beginning of the 21st century.

But Mayer told CNBC Friday that it's "vastly overhyped already."

"Numerous companies are currently receiving excessive amounts of capital at inflated valuations. As a result, there will be a leveling off. The advantages of AI will become more apparent in various industries, but the excitement surrounding it has reached an unprecedented level at the moment."

—CNBC's Jesse Pound and Arjun Kharpal contributed to this story.