On Monday, Alphabet's Google announced a new conversational AI technology it will open up to public testing, called Bard, which would rival ChatGPT.
"This is a company that went public in late 2021," Nathan said on CNBC's " Fast Money " Monday night.
"If we start seeing companies put .ai at the end of the company [name], we've been through that, we know what happens here," he added.
"A lot of times if a company is saying they have superior AI, that could be a warning sign."
The size and the quality of the data set an AI service uses is one of the best predictors of success, he added.