Sam Altman has said that AI may be in a bubble

OpenAI CEO Sam Altman believes the artificial intelligence sector is showing signs of a bubble, The Verge reported Friday.

“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told a small group of reporters last week. He added: “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes.”

Altman likened the current dynamic to the dot-com bubble, which saw internet-based stocks soar in the late 1990s before collapsing. Between March 2000 and October 2002, the Nasdaq lost nearly 80% of its value as many companies failed to generate meaningful revenue or profits.

His remarks echo a growing chorus of warnings from business leaders and economists who worry that capital is flooding into AI too quickly. Alibaba co-founder Joe Tsai, Bridgewater Associates’ Ray Dalio, and Apollo Global Management’s chief economist Torsten Slok have all raised similar concerns. Last month, Slok argued that today’s AI surge is even bigger than the internet bubble, pointing out that the top 10 companies in the S&P 500 look more overvalued now than in the 1990s.

Others, however, are more cautious in their assessment. Ray Wang, research director for semiconductors, supply chain, and emerging technology at Futurum Group, told CNBC by email Monday that Altman’s view has merit but may not apply across the board. “From the perspective of broader investment in AI and semiconductors... I don’t see it as a bubble. The fundamentals across the supply chain remain strong, and the long-term trajectory of the AI trend supports continued investment,” Wang said. At the same time, he acknowledged that speculative money is flowing into companies with weaker fundamentals and only perceived potential.