Bill Gates has cautioned that the current surge in AI investment resembles a speculative bubble, drawing parallels to the dot‑com boom of the late 1990s. He argues that while AI is deeply transformative, not all AI startups will succeed. Some may burn capital and eventually fail, much like many internet companies did after the dot‑com bubble burst.
Gates emphasized that his concern doesn’t come from dismissing AI’s potential — on the contrary, he called AI “the biggest technical thing ever.” He believes the long-term value is enormous, but warns that a lot of the frenetic investment activity may not pay off.
In addition to caution about overinvestment, he voiced concern that many companies are committing to costly data centers without fully considering power costs, suggesting a mismatch between long‑term infrastructure costs and future returns.
Still, Gates sees real opportunity if things are handled wisely. He has said that, over the next decade, AI could make expert-level advice and tutoring broadly available — even “free intelligence” — while also creating profound economic and social change.
