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Sam Altman warns of AI hype bubble, doubles down on OpenAI’s trillion-dollar vision
Sam Altman warns AI investment frenzy risks a bubble, urging focus on fundamentals, while outlining OpenAI’s trillion-dollar compute infrastructure plans, novel financing strategies, potential IPO, and massive Stargate partnership with SoftBank and Oracle.
Altman signalled OpenAI’s own sky-high ambitions, confirming plans to invest trillions of dollars in compute infrastructure to meet future AI demand.
OpenAI CEO Sam Altman has cautioned that the current wave of investor enthusiasm around artificial intelligence risks turning into a bubble, even as he laid out one of the boldest infrastructure investment plans in tech history.
Bloomberg reported that Altman compared the AI frenzy to the dot-com bubble, noting that extreme valuations and “irrational behaviour” in the market are driving unsustainable expectations. “Are we in a phase where investors as a whole are overexcited by AI? In my opinion, yes,” he said. “Is AI the most important thing to happen in a very long time? My opinion is also yes.”
While acknowledging AI’s transformative power, Altman stressed that not every startup in the space will survive. He urged founders and investors to prioritise fundamentals over hype, warning that companies built on shaky business models are likely to collapse when the exuberance cools.
At the same time, Altman signalled OpenAI’s own sky-high ambitions, confirming plans to invest trillions of dollars in compute infrastructure to meet future AI demand. He admitted economists might consider such an outlay “crazy” or “reckless,” but argued it was essential to advance the technology. The company is also working on a novel financial instrument to raise capital at that scale.
Altman added that OpenAI “probably” will have to go public eventually, though he admitted he may not be the right person to lead as CEO once that happens. The remarks come as OpenAI pushes forward with its $500 billion Stargate initiative in partnership with SoftBank and Oracle, underscoring the unprecedented scale of its long-term bets.
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