Bret Taylor, Chair of the Board at OpenAI and Chief Executive of AI agent startup Sierra, has admitted that the artificial intelligence sector is currently experiencing a bubble. However, he emphasized that this is not necessarily a cause for alarm.

Speaking in a recent interview with The Verge, Taylor was asked to reflect on OpenAI CEO Sam Altman’s earlier remarks that “someone is going to lose a phenomenal amount of money in AI.” He agreed with Altman, noting that while the hype is real and risks are high, the long-term value of AI remains undeniable.

“I think it is both true that AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future,” Taylor said. “I think we’re also in a bubble, and a lot of people will lose a lot of money. I think both are absolutely true at the same time, and there’s a lot of historical precedent for both of those things being true at the same time.”

Drawing a parallel with the dot-com bubble of the late 1990s, Taylor explained that although many companies collapsed during that era, the broader vision of the internet ultimately proved correct. He suggested the same pattern could play out in the AI sector, with some firms failing while others lay the foundation for long-term transformation.

Source: Techcrunch