OpenAI CEO Sam Altman said he thinks the artificial intelligence market is in a bubble – comparable to the dot-com crash of the early 2000s, according to a report.
OpenAI CEO Sam Altman warned that the billions of dollars being plowed into the artificial intelligence arms race risks causing a bubble comparable to the dot-com crash of the early 2000s.
“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman said during a dinner with a group of journalists, The Verge reported on Friday.
“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.”
Altman likened the AI funding rush to “the tech bubble,” when investors “got overexcited” about internet-based companies in the late 1990s.
Between March 2000 and October 2002, the Nasdaq lost nearly 80% of its value after many of these online companies failed to turn a profit.
In a report released last month, Torsten Slok, head economist at Apollo Global Management, argued that the AI bubble is actually bigger than the internet bubble, with the top 10 companies in the S&P 500 more overvalued than they were in the late 1990s.
Ray Wang, research director for semiconductors, supply chain and emerging technology at Futurum Group, took a more optimistic stance.
“From the perspective of broader investment in AI and semiconductors… I don’t see it as a bubble.
