Turns out everyone kind of thinks there’s an AI bubble.
According to a report from CNBC, top tech executives are worried about an AI bubble messing up their business.
Like other infamous bubbles — the dot-com bubble, the cryptocurrency bubble, and the housing bubble of the 2000s — an AI bubble could cause massive disruption to the wider economy. A bubble occurs when the price of something rises above its actual value, typically because investors become overly excited. And investors have been very excited about AI.
A recent report from Stanford University estimated that AI investment reached $109.1 billion in the U.S. in 2024. That’s 12 times higher than China’s investment and 24 times higher than the UK’s investment.
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CNBC reported that Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, investor Michael Burry, and Picsart CEO Hovhannes Avoyan are all worried about a potential AI bubble. In fact, even some AI leaders are getting nervous.
“I think the evaluations are pretty exaggerated here and there, and I think there is signs of a bubble on the horizon,” Jarek Kutylowski, CEO of German AI firm DeepL, told CNBC.
This isn’t the first time we’ve heard about a potential AI bubble. In August, OpenAI’s Sam Altman talked about his own AI bubble fears to a small group of reporters, including The Verge’s Alex Heath, over dinner in San Francisco.
“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told the reporters. “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. Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes.”
Topics
Artificial Intelligence
