OpenAI's Sam Altman Cautioning AI Market Bubble

Published Date : 19/08/2025 

OpenAI CEO Sam Altman has expressed concerns about the artificial intelligence (AI) market, suggesting that investors are overexcited about the technology's potential. 

OpenAI’s chief executive, Sam Altman, has voiced his concerns about the artificial intelligence (AI) market, suggesting that it might be in a bubble. In an interview with The Verge, Altman stated, “When bubbles happen, smart people get overexcited about a kernel of truth.” He further elaborated, “If you look at most of the bubbles in history, like the tech bubble, there was a real thing. Tech was really important. The internet was a really big deal. People got overexcited. 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’s comments were highlighted in a report by CNBC, which noted that he is not alone in his concerns. Notable figures such as Alibaba Co-founder Joe Tsai, Bridgewater Associates’ Ray Dalio, and Apollo Global Management Chief Economist Torsten Slok have also raised similar concerns. Slok contended that today’s AI bubble is even bigger than the dotcom bubble, with the 10 leading companies in the S&P 500 more overvalued than they were during the 1990s.

Despite these warnings, the AI sector continues to attract significant investments. Last week, OpenAI rival Cohere raised $500 million at a $6.8 billion valuation. Similarly, Cognition raised $500 million to support its AI software code generation products, doubling the company’s valuation to $9.8 billion.

Ray Wang, CEO of Silicon Valley-based Constellation Research, offered a more nuanced view. “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,” he said.

In other AI news, discussions about the technology’s potential to cure cancer have been met with skepticism. Kiara DeWitt, CEO of Injectco and a nurse, expressed her doubts. “The idea that AI will eliminate cancer is incredibly optimistic, but honestly, it is not as straightforward as it sounds,” she said. Although AI can drastically improve diagnostics, a full cure is another matter entirely. “Most cancer ‘cures’ are heavily individualized, dependent on patient genetics, immune responses, and countless environmental variables no AI model fully comprehends today,” she added.

Despite the challenges, AI-driven image recognition software has the potential to increase five-year survival rates by 30%. However, curing every case remains beyond AI’s current capabilities. The complexity of cancer and the numerous variables involved make a universal cure a distant goal. 

Frequently Asked Questions (FAQS): 

Q: What is Sam Altman's main concern about the AI market?

A: Sam Altman, CEO of OpenAI, is concerned that investors are overexcited about the AI market, suggesting it might be in a bubble.

Q: What historical bubbles does Sam Altman compare the AI market to?

A: Sam Altman compares the AI market to historical bubbles like the tech bubble, emphasizing that while the core technology is important, overexcitement can lead to a bubble.

Q: Who else shares Sam Altman's concerns about the AI market?

A: Notable figures such as Alibaba Co-founder Joe Tsai, Bridgewater Associates’ Ray Dalio, and Apollo Global Management Chief Economist Torsten Slok share similar concerns about the AI market.

Q: What recent investments in AI companies have been reported?

A: Recent investments include Cohere raising $500 million at a $6.8 billion valuation and Cognition raising $500 million, doubling its valuation to $9.8 billion.

Q: What are the challenges in using AI to cure cancer?

A: The challenges in using AI to cure cancer include the individualized nature of cancer treatments, the complexity of patient genetics, immune responses, and numerous environmental variables that AI models currently do not fully comprehend. 

More Related Topics :