Jeff Bezos, the founder of Amazon, commented on the current state of artificial intelligence at Italian Tech Week in Turin, Italy. During a conversation with John Elkann, CEO of Exor, Bezos described the situation in the AI industry as a kind of industrial bubble. According to him, this is evident in stock prices becoming detached from companies’ underlying economic fundamentals. People are excited about artificial intelligence, which is leading to all kinds of ideas being funded—both good and bad. Amid this excitement, investors then find it difficult to distinguish which projects are worthwhile.
Bezos gave a specific example: a small company with six employees receives billions of dollars for development even though it does not yet have a finished product. According to him, such behavior is highly unusual, but it is happening today. Nevertheless, Bezos emphasized that this does not mean the entire development of AI is fake. On the contrary, artificial intelligence is real and will transform every industry. In his words, the benefits to society will be enormous.
The Positive Side of the Bubble
Bezos compared the current situation to the biotechnology and pharmaceutical industry bubble of the 1990s. Back then, many projects also received investment, and numerous companies went bankrupt, but ultimately, life-saving drugs emerged from it. According to him, industrial bubbles are not as harmful as financial ones because, once they subside, the winners remain and their inventions benefit society as a whole. Bezos believes the same will happen with AI—after the storm, genuine innovations will emerge that will change the world for the better.
At the event in Turin, Bezos spoke before an audience and emphasized that although ideas are currently being funded regardless of their quality, the overall effect will be positive. Society will gain enormous benefits because AI is a real technology with the potential to affect every area of life.
Warnings from Other Experts
Bezos is not the only one talking about an AI bubble. For example, OpenAI CEO Sam Altman recently said that the AI market is in a bubble. David Solomon, CEO of Goldman Sachs, expressed a similar view, warning at the same event of a possible stock market decline due to excessive enthusiasm about AI. According to Solomon, investors are currently overestimating the positives and underestimating the risks, which could lead to a market correction.
Karim Moussalem of Selwood Asset Management last week compared AI trading to one of the great speculative manias in market history. These voices say that current investment in AI resembles the dot-com bubble of 2000, when the prices of internet companies soared and then plunged sharply.
According to recent analyses, such as one by Macro Strategy Partnership, investment in AI now exceeds the levels seen during the dot-com era. Experts warn that if technological progress in AI fails to keep pace with financial expectations, markets could face a severe correction. Nevertheless, Bezos remains optimistic and sees this bubble as an opportunity for long-term innovation. Bezos also mentioned that AI is entering a golden age of technology that will affect companies around the world.
