Sam Altman Warns of AI Bubble While OpenAI Seeks $500B Valuation
40 Sources
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Sam Altman calls AI a "bubble" while seeking $500B valuation for OpenAI
Last Thursday, OpenAI CEO Sam Altman told reporters at a private dinner that investors are overexcited about AI models. "Someone" will lose a "phenomenal amount of money," he said, according to The Verge. The statement came as his company negotiates a secondary share sale at a $500 billion
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Sam Altman, over bread rolls, explores life after GPT-5 | TechCrunch
I'm looking out at Alcatraz Island from a Mediterranean restaurant in San Francisco with hundred-dollar fish entrees on the menu. As I make small talk with other reporters, OpenAI CEO Sam Altman jumps through the door on my left. Altman's looking down at his bare iPhone to show us all something,
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Sam Altman Says ChatGPT Is on Track to Out-Talk Humanity
The OpenAI CEO addressed GPT-5 backlash, the AI bubble -- and why he's willing to spend trillions of dollars to win. Nevermind the GPT-5 complaints; Sam Altman says he believes ChatGPT is on track to have more conversations per day than all human beings combined. "If you project our growth
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OpenAI CEO Sam Altman Believes We're In an AI Bubble
Imad is a senior reporter covering Google and internet culture. Hailing from Texas, Imad started his journalism career in 2013 and has amassed bylines with The New York Times, The Washington Post, ESPN, Tom's Guide and Wired, among others. OpenAI CEO Sam Altman believes that, given all the AI hype
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Sam Altman says 'yes,' AI is in a bubble
As economists speculate whether the stock market is in an AI bubble that could soon burst, OpenAI CEO Sam Altman has just admitted to believing we're in one. "Are we in a phase where investors as a whole are overexcited about AI?" Altman said during a lengthy interview with The Verge and other
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OpenAI's rocky GPT-5 launch is the beginning of an uphill battle for AI, as Meta announces another restructuring
As the hype train slows down, the AI industry is thinking about where it's headed next The launch of GPT-5 was meant to herald a new era for OpenAI. After introducing GPT-4 two years prior, the company was finally going to move forward from iterative releases based on GPT-4, and unleash a
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Sam Altman admits that AI is a bubble, but still a big thing
Sam Altman, busily planning to spend "trillions" more on datacenters, admitted yesterday that AI is a bit inflated Sam Altman admitted we're in the midst of an AI bubble Thursday, but don't let that fool you: He still intends to rule over whatever's left after it bursts. A bubble, the OpenAI CEO
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OpenAI's Sam Altman sees AI bubble forming as industry spending surges
OpenAI Co-Founder and CEO Sam Altman speaks at Snowflake Summit in San Francisco on June 2, 2025. OpenAI CEO Sam Altman thinks the artificial intelligence market is in a bubble, according to a report from The Verge published Friday. "When bubbles happen, smart people get overexcited about a
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CNBC Daily Open: Is the AI industry in a bubble, as OpenAI CEO says?
Taken from CNBC's Daily Open, our international markets newsletter -- Subscribe today There's a bubble forming in the artificial intelligence industry, according to OpenAI CEO Sam Altman. "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most
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Analysts downplay AI bubble worries as Altman says some investors will be left 'very burnt'
The artificial intelligence boom that Sam Altman helped ignite with ChatGPT in late 2022 is starting to make even him uneasy. Startups with little more than a pitch deck are raising hundreds of millions. Valuations have become "insane." Capital is chasing a "kernel of truth" with feverish
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CNBC Daily Open: OpenAI CEO, who sparked AI frenzy, worries about AI bubble
There's a bubble forming in the artificial intelligence industry, according to OpenAI CEO Sam Altman. "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 said. "I'm
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As People Ridicule GPT-5, Sam Altman Says OpenAI Will Need 'Trillions' in Infrastructure
Despite recent embarrassments, the OpenAI CEO's attitude appears to be: Onward and upward! People have ridiculed GPT-5, the newest large language model release from OpenAI, since the second it launched, with many users complaining that it's dumb, boring, and not as good as the last LLM that the
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The AI Report That's Spooking Wall Street
The majority of companies are failing to see any returns on their AI investments, a report finds. A new report from MIT is casting doubt on the hype around the financial value AI brings to businesses, and may be triggering a small tech stock sell-off on Tuesday. The report, The GenAI Divide:
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ChatGPT's Sam Altman says we're in an AI bubble -- here's what that means and why it matters
The hype around AI is hitting a fever pitch, but even OpenAI CEO Sam Altman, one of the leading architects of the AI boom, says things may have gone too far. In a recent dinner with journalists, Altman compared today's AI enthusiasm to the dot-com bubble of the late '90s, warning that while the
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Sam Altman: Never mind the launch mess -- full speed ahead
The big picture: Altman has heard the concerns, integrated some lessons learned and is charging forward with plans to spend literally trillions of dollars to build a slew of products and services, led by an even more ubiquitous ChatGPT. What he's saying: "If you project our growth forward, pretty
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OpenAI's Sam Altman warns of AI bubble
"When bubbles happen, smart people get overexcited about a kernel of truth," he told a small group of reporters, including The Verge's Alex Heath, over dinner in San Francisco. "If you look at most of the bubbles in history, like the tech bubble, there was a real thing. Tech was really important.
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Sam Altman admits OpenAI 'totally screwed up' its ChatGPT-5 launch and says the company will spend trillions of dollars on data centers
Sam Altman wants to rewire the internet, build brain-computer interfaces, and maybe even buy Google Chrome. He even sees a future where sustaining ChatGPT's growth means building infrastructure so massive it rivals the world's largest utilities. But first, he's cleaning up a mess at the center of
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Sam Altman Says the Quiet Part Out Loud, Believes We're in an AI Bubble
OpenAI CEO Sam Altman just admitted to what the rest of the AI industry won't: that the entire thing could be a big, fat bubble, ready to burst. Though it's a fiercely debated topic -- with many experts saying the writing's on the wall -- the OpenAI CEO was unwavering in his conviction. "When
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Sam Altman might be right: He's not the only one who thinks the stock market is in 'bubble' territory
OpenAI CEO Sam Altman said the word "bubble" three times in 15 seconds in a room full of reporters and then urged them not to write a story about it -- thus ensuring that plenty of stories would be written. He was arguing that investors are "overexcited" by AI. From the point of view of technical
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The AI report triggering panic and fear on Wall Street
"When will the internet bubble burst?" the cover story of Barron's asked on March 20 2000. "That unpleasant popping sound is likely to be heard before the end of this year." In fact, that same day, one of the most high-profile tech businesses of the moment suffered a share price plunge of 60pc. A
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Wall Street Appears to Be Having Serious Doubts About AI
The amount of cash backing artificial intelligence right now is so high that it's almost meaningless to the average person. There are now almost 500 AI unicorns -- companies valued at over $1 billion -- worth a total of roughly $2.7 trillion, enough to do some serious damage to the economy if
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OpenAI CEO Sam Altman says an AI bubble is forming
The AI valuations feel irrational. And that's the diagnosis from someone who would know: OpenAI CEO Sam Altman. Altman, the face -- and often the voice -- of the AI boom, just warned that the AI frenzy is spilling past reason into bubble territory. At a recent dinner with reporters in San
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Experts say the market's AI anxiety will 'punish those chasing the froth'
Major technology stocks tied to artificial intelligence took a sharp downward turn Tuesday, rattling markets and raising concerns the sector's billion-dollar promises may not be bearing fruit as quickly as hoped. Shares of Palantir Technologies, the data-analytics firm widely viewed as an AI
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Wall Street isn't worried about an AI bubble. Sam Altman is.
Speaking to reporters over dinner late last week, Altman drew a parallel between today's AI frenzy and the 1990s dot-com bubble, when internet company valuations spiked dramatically before crashing. "When bubbles happen, smart people get overexcited about a kernel of truth," Altman said, in
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US tech stocks slide after Altman warns on AI future and MIT study casts doubt on the hype
Investors' long-running enthusiasm for artificial intelligence showed signs of faltering late Tuesday and early Wednesday morning as tech stocks tumbled. Nasdaq 100 futures were off 0.2% this morning, premarket. Nvidia, fresh off becoming the world's first $4 trillion company, sank 3.5%, while
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US tech stocks tumble on AI bubble fears
US stocks have plunged for a second day amid fears that an AI-powered stock market rally could be about to collapse. The tech-heavy Nasdaq fell by 1.8pc in early trading on Wednesday, leaving the index down more than 7pc so far this week in the worst sell-off since April. Elsewhere on Wall Street,
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OpenAI's Sam Altman sees AI bubble forming as industry spending surges
Sam Altman, CEO of OpenAI, in Washington, D.C., on July 22.Andrew Harnik / Getty Images file OpenAI CEO Sam Altman thinks the artificial intelligence market is in a bubble, according to a report from The Verge published Friday. "When bubbles happen, smart people get overexcited about a kernel of
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'Someone is going to lose a phenomenal amount of money' says OpenAI CEO Sam Altman about unwise AI investment. 'When bubbles happen, smart people get overexcited about a kernel of truth'
OpenAI CEO Sam Altman spoke to assembled reporters at a dinner in San Francisco late last week on the topic of, you guessed it, AI, the applications of AI, and the vast sums of money moving behind the scenes to fund it. Despite being one of the most vocal advocates of the tech, Altman had some
[29]
Markets spooked as MIT report finds 95pc of business see no Gen AI ROI
A negative GenAI report from MIT's NANDA, hot on the heels of Sam Altman's 'bubble' comments, led to a drop in big tech shares yesterday. One does not have to be a genius to surmise that the current hype around Generative AI (Gen AI) might be a little over the top, but a report this week from
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Sam Altman Admits the AI Bubble Is Here
In an interview with reporters from multiple publications on Thursday night, OpenAI CEO Sam Altman said he believes the AI sector has entered the territory of a financial bubble. The AI sector has exploded since 2022, largely based on the growth of Altman's company and its flagship product,
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OpenAI CEO Sam Altman Thinks We're in an AI Bubble Because Investors Are 'Overexcited' About Artificial Intelligence
He said that investors are now "overexcited" about AI, with startup valuations reaching "insane" heights. OpenAI CEO Sam Altman thinks that the billions of dollars invested in AI now could create a bubble similar to the dot-com crash of the early 2000s. "Are we in a phase where investors as a
[32]
Sam Altman Warns Investors That 'Someone's Gonna Get Burned': Report
He reportedly added that AI will be a "huge net win for the economy" OpenAI CEO Sam Altman reportedly admitted last week that the ongoing excitement around the generative artificial intelligence (AI) technology resembles the 1990s dot-com bubble. As per the report, Altman made the comments during
[33]
Cracks in the AI hype? Warning signs suggest the Bubble could soon explode
The AI boom is showing warning signs as many business investments give little or no return. Stocks like Nvidia and Palantir fell after an MIT report highlighted failing AI projects. Experts and investors worry about a possible tech bubble, while big companies like Meta and OpenAI rethink AI
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OpenAI's Sam Altman willing to pour trillions of dollars into AI infrastructure - The Economic Times
OpenAI chief executive Sam Altman said the company is prepared to invest trillions of dollars over time in artificial intelligence (AI) infrastructure if it can design a new way to finance such massive spending. Altman told Bloomberg that OpenAI aims to build large-scale data centers in the near
[35]
Tech stocks tumble as investors flee -- is the AI bubble finally about to burst?
Stock market AI bubble 2025: Tech stocks experienced a downturn, sparking concerns about a cooling AI market obsession. Big tech companies like Amazon, Apple, and Nvidia faced declines, influenced by a study revealing limited AI returns for most companies. OpenAI CEO Sam Altman's warning of an AI
[36]
Sam Altman Says OpenAI Has To 'Go Public' As He Expects AI Firm To Spend 'Trillions,' Drawing 1990s Dot-Com Bubble Parallels - SoftBank Group (OTC:SFTBF), Oracle (NYSE:ORCL)
On Thursday, Sam Altman said people should "expect OpenAI to spend trillions of dollars" building infrastructure to power artificial intelligence, while also drawing parallels between today's AI investment and the late 1990s dot-com bubble. Trending Investment OpportunitiesAdvertisementArrivedBuy
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OpenAI Chief Sam Altman Cautions Against AI Bubble | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. "When bubbles happen, smart people get overexcited about a kernel of truth,"
[38]
AI Bubble Worries 'Spooking' Tech Investors | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. That's according to a Financial Times report Wednesday (Aug. 20), which pointed
[39]
OpenAI CEO Sam Altman warns of AI bubble, says investors are...
OpenAI CEO Sam Altman warned that the billions of dollars being plowed into the artificial intelligence arms race risks causing a bubble comparable to the dot-com crash of the early 2000s. "When bubbles happen, smart people get overexcited about a kernel of truth," Altman said during a dinner with
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Bubble or no bubble? Wall Street wonders about AI
In this article, you will find an in-depth look at the growing doubts surrounding AI, including a shocking report from MIT, the failed launch of GPT-5, and feverish financial markets fearing a speculative bubble. You will also see how the promises of OpenAI and industry giants are coming up against
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OpenAI CEO Sam Altman acknowledges an AI investment bubble while simultaneously pursuing a $500 billion valuation for his company, highlighting the complex dynamics of the current AI market.
Sam Altman's Bubble Warning and OpenAI's Ambitious Valuation
OpenAI CEO Sam Altman has sparked controversy by acknowledging an AI investment bubble while simultaneously seeking a $500 billion valuation for his company. This apparent contradiction has raised eyebrows in the tech industry and among investors, highlighting the complex dynamics of the current AI market.
The AI Bubble Acknowledgment
During a private dinner with reporters, Altman candidly stated, "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes"
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. He compared the current market to the dot-com crash of the 1990s, suggesting that "someone" will lose a "phenomenal amount of money"3
.
Source: Fortune
Altman's comments coincided with the release of an MIT study showing widespread enterprise AI failures. The research found that 95 percent of enterprise AI pilots fail to deliver rapid revenue acceleration, attributing these failures to implementation problems rather than model quality
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.OpenAI's Ambitious Valuation and Future Plans
Despite his bubble warnings, Altman is pursuing a $500 billion valuation for OpenAI through a secondary share sale. This valuation would make OpenAI worth more than established companies like Walmart or ExxonMobil, despite OpenAI reportedly heading toward a $5 billion annual loss
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.Altman's vision for OpenAI extends far beyond its current operations. He predicts that ChatGPT will soon serve "billions of people a day" and that OpenAI will spend "trillions of dollars on data center construction in the not very distant future"
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. These ambitious projections are part of a broader strategy to position OpenAI as a dominant force in the AI industry.
Source: ET
The Unique Nature of the Current AI Market
The current AI investment cycle differs significantly from previous technology bubbles. Unlike the dot-com era startups, the largest AI investors - Microsoft, Google, Meta, and Amazon - generate hundreds of billions of dollars in annual profits from their core businesses
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.This financial stability allows these companies to sustain potential losses from AI development for years without facing the cash crises that typically trigger bubble collapses. As Citi's Rob Rowe noted, "Here you're talking about companies that have very solid earnings, very strong cash flow"
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.OpenAI's Expanding Horizons
Beyond AI models, OpenAI is diversifying its focus. Altman confirmed plans to back a brain-computer interface startup, Merge Labs, to compete with Elon Musk's Neuralink
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. The company is also exploring AI-powered social media experiences and considering the development of an AI-powered browser to compete with Chrome2
.Related Stories
The GPT-5 Launch and User Feedback
Source: Market Screener
The recent launch of GPT-5 faced some challenges, with users expressing concerns over the model's tone and performance. Altman acknowledged misstepping with the release, particularly in failing to anticipate how changes in the model's tone would affect consumers
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. In response, OpenAI quickly reintroduced access to the previous model, GPT-4o, for Plus users4
.The Future of AI and OpenAI
Despite the challenges and controversies, Altman remains optimistic about AI's transformative potential. He believes that while some AI investments may not pan out, the overall impact on the economy will be positive
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. As OpenAI continues to grow and diversify, it appears to be positioning itself not just as an AI model creator, but as a major tech conglomerate with interests spanning multiple sectors of the technology industry.References
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