
It appears that many think there is an AI bubble. A CNBC report suggests that leading tech executives are worried about an AI bubble impacting their companies. Similar to previous bubbles such as the dot-com, cryptocurrency, and housing bubbles, an AI bubble could greatly disturb the economy. Bubbles arise when prices surpass actual worth because of investor enthusiasm, and investors are quite enthusiastic about AI. A report from Stanford University estimated that AI investment in the U.S. hit $109.1 billion in 2024, which is 12 times more than that of China and 24 times greater than the UK’s. CNBC highlighted that Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, investor Michael Burry, and Picsart CEO Hovhannes Avoyan share concerns about a possible AI bubble. Even some leaders in AI express discomfort. Jarek Kutylowski, CEO of the German AI company DeepL, told CNBC that valuations appear inflated, signaling signs of a bubble. This is not a new worry; in August, OpenAI’s Sam Altman voiced his concerns regarding an AI bubble to a small group of journalists, including The Verge’s Alex Heath, during a dinner in San Francisco. Altman noted that bubbles happen when intelligent people get excessively excited about a nugget of truth, using the tech bubble as an example. He feels investors are presently overly enthusiastic about AI, but he also views AI as incredibly significant.