Altman said investors are “overexcited” about AI, even while acknowledging it is one of the most significant technological shifts in decades.
OpenAI CEO Sam Altman has warned that the artificial intelligence industry may be in a bubble, according to comments reported by The Verge.
“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told reporters. “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 appeared to draw comparisons with the dot-com bubble of the late 1990s, which wiped out nearly 80% of Nasdaq’s value when internet firms failed to deliver profits.
His warning echoes concerns from Alibaba’s Joe Tsai, Bridgewater’s Ray Dalio and Apollo economist Torsten Slok, who argued in July that the AI bubble could be “bigger than the internet bubble.”
Despite OpenAI’s soaring valuation — now estimated at $500 billion — Altman said speculative capital is chasing weaker firms. He also signaled doubts about the relevance of “artificial general intelligence” and acknowledged challenges around OpenAI’s recent GPT-5 rollout.
Still, investor confidence remains high, with OpenAI raising billions for expansion and preparing further stock sales.