Sam Altman Warns We’re in an AI Bubble and People are ‘Overexcited about AI’ Even If It’s ‘The Most Important Thing’ in Recent Times

OpenAI CEO Sam Altman believes the world is living through an artificial intelligence (AI) bubble — but he insists that the underlying technology remains one of the most important innovations of the modern era.

Speaking candidly about the current hype cycle, Altman drew comparisons to past periods of speculative frenzy, including the dot-com bubble of the late 1990s and early 2000s.

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“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told The Verge. “If you look at most of the bubbles in history, like the tech bubble, there was a real thing. Tech was really important. The internet was a really big deal. People got overexcited. 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.”

The Bubble Paradox

Altman’s perspective captures the paradox of bubbles: they often form around technologies that truly matter. Just as the internet bubble inflated around genuine innovation in the 1990s, today’s AI boom has been fueled by breakthroughs in large language models (LLMs) and generative tools.

For Altman, the danger lies not in the technology itself, but in the overexuberance of markets and investors. Billions of dollars are being funneled into AI startups, data centers, and chip manufacturing, sometimes with lofty promises of near-term returns. The result has been valuations that may not align with business realities.

That said, history suggests bubbles can play a productive role. The dot-com crash wiped out many speculative ventures, but it also left behind the infrastructure and companies that shaped the modern internet. Altman appears to believe that AI will follow a similar arc of hype, correction, and then lasting transformation.

AI as a Defining Technology

Despite warning of investor excess, Altman doubled down on his conviction that AI is a turning point in human history.

“Is AI the most important thing to happen in a very long time? My opinion is also yes,” he emphasized.

That framing positions AI as a general-purpose technology — akin to electricity or the internet — with the potential to reshape industries, economies, and daily life. From productivity gains in software development and education to breakthroughs in drug discovery and science, AI is increasingly woven into critical domains.

Story Continues## Balancing Optimism and Realism

Altman’s comments serve as both a cautionary note and a reassurance. On one hand, he acknowledges the frothiness of today’s investment climate, while on the other, he maintains that the long-term significance of AI cannot be overstated.

The message reflects OpenAI’s dual role. The ChatGPT parent company is a pioneer racing to push the boundaries of AI, while also navigating the responsibility that comes with leading a field at the center of a global hype cycle.

The Road Ahead

As investors and technologists wrestle with the pace of AI development, Altman’s bubble warning suggests a market correction may be inevitable. But unlike many bubbles of the past, this one is tied to a technology that is already proving indispensable.

For OpenAI and the wider industry, the challenge will be managing expectations without stifling progress — and ensuring that the inevitable turbulence of hype doesn’t overshadow AI’s long-term value.

On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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