Billionaire Jeff Bezos, founder of Amazon, said on Friday (3) at Italian Tech Week that Artificial Intelligence (AI) is currently going through what he called an “industrial bubble.” While pointing out the risks of overhype and inflated investments, he also emphasised the technology’s transformative potential for society.
Bezos’ comments echo similar warnings from other tech leaders, including OpenAI CEO Sam Altman, who recently admitted there are clear signs of “excessive euphoria” in the AI sector.
What does “industrial bubble” mean?
The term refers to a period when enthusiasm and investment in a particular industry surge beyond what’s sustainable. When expectations aren’t met, the bubble eventually “bursts.” Bezos drew a parallel with the internet boom of the 1990s and, more specifically, with the rise of biotechnology in that same decade. Many biotech startups vanished, but the few that endured went on to make groundbreaking scientific contributions.
According to Bezos, AI is following a similar path. While countless projects will fail due to a lack of long-term viability, those that succeed could reshape entire industries.
One example is OpenAI, currently valued at around $500 billion after securing a massive $100 billion investment from Nvidia. Yet, despite its valuation, OpenAI hasn’t generated significant profits—an imbalance Altman himself has acknowledged, warning that investors may be “too excited” given the still-limited real-world returns.
That concern is backed by data: an MIT study found that 95% of AI-related investments have failed to deliver measurable returns.
Even so, optimism remains high. Altman has outlined bold plans to keep building AI infrastructure, including the Stargate project, which envisions hundreds of billions in long-term investment.
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