OpenAI CEO, Chairman Compare AI Surge to Dot-Com Bubble Amid $500B Valuation

Sam Altman, CEO of OpenAI, has acknowledged signs of a financial bubble in the current artificial intelligence (AI) market, comparing it to the dot-com boom of the 1990s, where many startups were overvalued and some faced collapse. Despite this, Altman remains confident in OpenAI's long-term prospects, planning to invest trillions in AI infrastructure, reflecting a broader industry trend with companies like Microsoft and Meta committing tens of billions to AI data centers. OpenAI's valuation has surged toward $500 billion, supported by substantial funding rounds and employee share sales, indicating strong market confidence rather than desperation. OpenAI chairman Bret Taylor echoes this perspective, noting that while the AI boom shares similarities with the dot-com era, including the presence of both winners and losers, ultimate success will depend on real-world utility, responsible deployment, and scalable infrastructure. Meanwhile, competition from China, which is leveraging open-source AI technology and aggressive pricing strategies, is reshaping the global AI landscape by offering a low-cost alternative to Western models and expanding its geopolitical influence. This multifaceted situation highlights the tension between speculative hype and the transformative potential of AI, with major players preparing for large-scale, sustainable growth despite market uncertainties.