OpenAI CEO Sam Altman believes the artificial intelligence market is currently experiencing a bubble, where smart people are getting overexcited about a kernel of truth. He compared the current AI boom to the dot-com bubble of the late 1990s, where investors poured money into internet companies with huge expectations, ultimately leading to a market crash.
Altman warned that some investors and companies will get burned when expectations don't match reality, citing "insane" valuations and "irrational behavior" in the industry. Despite this, he remains optimistic about AI's long-term potential, stating it's the most important thing to happen in a very long time.
The AI market has seen significant investment and hype in recent years, with many companies and investors betting big on the technology's potential to transform industries and drive growth. However, Altman cautioned that this hype could lead to inflated valuations and potential losses for some investors.
Altman also drew parallels to the dot-com bubble, where the Nasdaq lost nearly 80% of its value between 2000 and 2002. He believes that while AI has the potential to deliver significant economic value, it's essential to approach the market with caution and realistic expectations.
Looking ahead, Altman mentioned OpenAI's plans to invest trillions of dollars in data center construction to support its AI ambitions. He also expressed caution about expectations for artificial general intelligence (AGI), highlighting the complexity and challenges of developing such advanced technology.
