OpenAI CEO Altman Warns of AI Bubble Amid $500B Valuation

OpenAI CEO Sam Altman has warned that the artificial intelligence sector is experiencing a bubble reminiscent of the late 1990s dot-com crash, driven by investor overexcitement despite AI's significance as a transformative technology. Altman emphasized that while AI is incredibly important, much of the current investment is speculative, creating inflated valuations and a potential market correction similar to past tech bubbles. Economists like Apollo Global Management's Torsten Slok have echoed these concerns, suggesting the AI bubble may surpass the internet bubble in scale given the overvaluation of major companies. However, some experts, such as Ray Wang from Futurum Group, argue that the fundamentals of AI and semiconductor markets remain strong, with overvaluation limited to certain speculative areas. OpenAI itself is nearing a $500 billion valuation, with annual revenue projections exceeding $20 billion, yet it remains unprofitable and has faced challenges with its latest GPT-5 model. The debate highlights a tension between recognizing AI's long-term potential and the risks posed by current investment frenzy and infrastructure bottlenecks.