MIT Warns AI Bubble Risks Following Tech Stock Drop

Experts and industry leaders are increasingly warning that the AI market is showing signs of a bubble that could burst, reminiscent of the dot-com crash, with potentially severe economic and systemic consequences. A Massachusetts Institute of Technology report found that despite massive investments, 95% of businesses see no measurable financial return from AI implementations, with only 5% generating significant value. OpenAI CEO Sam Altman acknowledged investor overexcitement and admitted to missteps in the rollout of GPT-5, which failed to meet expectations and disappointed users. Analysts note that while AI's transformative potential is undeniable, the current exuberance risks reckless valuations and instability, which could disrupt critical infrastructure and global economies if a sudden correction occurs. Some commentators argue that this frothy period of AI hype mirrors historical tech bubbles, yet also view the crash as a necessary phase before sustainable growth, echoing lessons from the early internet era. Despite skepticism and recent setbacks, AI's strategic importance and ongoing investments by tech giants suggest the technology's evolution will persist beyond the current market volatility.