Jeff Bezos Acknowledges AI Industry Bubble but Highlights Its Long-Term Benefits
Jeff Bezos describes the AI sector as being in an industrial bubble akin to past tech surges but stresses its real and transformative potential.
- • Jeff Bezos labels the current AI industry as an industrial bubble with inflated valuations disconnected from fundamentals.
- • He compares the AI bubble to the 1990s biotech bubble that ultimately spurred important medical advances.
- • Bezos underscores that AI technology is real and will deliver significant benefits to society and various industries.
- • Other leaders like OpenAI CEO Sam Altman and Goldman Sachs CEO David Solomon also acknowledge the AI bubble and caution on market overvaluation.
Key details
At the Italian Tech Week in Turin on October 3, 2025, Amazon founder Jeff Bezos characterized the current artificial intelligence (AI) industry as an "industrial bubble," noting that stock prices have become disconnected from underlying business fundamentals. He highlighted how during such bubbles, indiscriminate funding flows into companies regardless of quality, citing an example of a six-person AI company receiving billions in investment. Nonetheless, Bezos emphasized that AI is a legitimate technology poised to bring "gigantic" benefits across industries.
Drawing parallels to the biotech bubble of the 1990s, which despite many failures led to major medical breakthroughs, Bezos expressed optimism that the eventual winners in AI will provide substantial societal value. His remarks echo concerns expressed by other industry leaders such as OpenAI CEO Sam Altman and Goldman Sachs CEO David Solomon; the latter has warned of a market reset due to overvaluation stemming from investor enthusiasm.
Bezos’ perspective situates the AI sector within a familiar pattern of disruptive technology cycles — marked by temporary overexuberance but resulting in long-term progress and innovation. This view sheds light on current investment behaviors while affirming the transformative potential of AI technology for the future.