AI bubble: Sam Altman says, ‘investors as a whole are overexcited about AI’
OpenAI CEO Sam Altman has acknowledged what many economists have suspected for months: the artificial intelligence sector is in a bubble fueled by overexcited investors. In a dinner interview with reporters in San Francisco, the ChatGPT chief compared today’s AI investment frenzy to the dot-com bubble of the late 1990s – a rare moment of candor from a leader whose company sits at the center of the boom.
“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes,” Altman said.
Altman’s remarks come as AI companies draw massive funding despite minimal revenue or proven business models. He said today’s market mirrors past moments when genuine breakthroughs sparked rapid overvalued investment. Venture capital firms have poured record sums into AI startups, with some valuations defying traditional metrics.
“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman explained. “If you look at most of the bubbles in history, like the tech bubble, there was a real thing. Tech was really important. The internet was a really big deal. People got overexcited.” [Continue reading…]