Amazon.com Inc. Chairman Jeff Bezos cautioned investors on Friday about the current surge of money flowing into artificial intelligence, describing it as an industrial bubble, but one that could ultimately benefit society. Speaking at an event in Turin, Bezos said the intense excitement around AI often pushes investors to support all types of ideas, making it difficult to separate strong concepts from weak ones.
Bezos noted that some companies are receiving billions of dollars before even producing a product. He compared today’s AI investment environment to the biotech surge in the 1990s, when many firms collapsed and investors lost money, yet society still gained important medical breakthroughs. He also recalled the dot-com era, a period that was turbulent for markets but laid the foundation for many of the digital services used today.
“AI will reshape every industry and increase the productivity of every company worldwide,” Bezos said. The momentum has driven huge funding into businesses building AI systems, data centres, chips and applications. There is also strong interest in so-called neocloud providers that supply extra computing power and specialized chips for AI tasks, even if they have not yet built their infrastructure.
The excitement has driven major valuations. A business of BlackRock Inc. is reportedly in talks to acquire Aligned Data Centres in a deal that could reach about $40 billion. OpenAI reached a valuation of $500 billion in a recent secondary share sale. Some investors have warned that a hype bubble is forming, including the chief investment officer of GIC Pte, who pointed to rising risks in early-stage AI ventures.
Bezos urged patience and a long-term view, saying that when the dust settles, the winners will deliver real value and that the benefits of AI for society will be gigantic.
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