OpenAI CEO Sam Altman thinks the AI industry is in the midst of a bubble, driven by investor overexcitement and hype surrounding artificial intelligence. Despite this, Altman remains optimistic about AI's long-term potential, emphasizing its transformative impact on the economy. He draws parallels between the current AI frenzy and the dot-com bubble of the late 1990s, which ultimately led to a market crash.
Altman notes that smart people often get overexcited about a kernel of truth, leading to irrational investment decisions. This sentiment is echoed by other industry leaders, including Alibaba's Joe Tsai, Bridgewater Associates' Ray Dalio, and Apollo Global Management's Torsten Slok. The AI industry has seen significant investment, with companies like OpenAI receiving substantial funding.
OpenAI's valuation has reached $500 billion, with the company preparing to sell $6 billion in stock. Despite this, the company remains unprofitable, with Altman emphasizing the need for long-term investment in AI research and development. Some analysts caution that while the AI market has solid fundamentals, speculative capital is flooding into weaker companies with unproven potential.
This could lead to pockets of overvaluation and potential losses for investors. Altman has expressed ambitions for OpenAI's future growth, including spending trillions of dollars on data centers and exploring brain-computer interface technology. He also hinted at the possibility of acquiring Chrome if Google is forced to sell it. Despite the current bubble, Altman believes AI will have a lasting impact on the economy and society.
