People may be going crazy over ChatGPT and AI stocks, but one of the most successful entrepreneurs of all time, Jeff Bezos, came out a few days ago and said it bluntly:
AI is probably an industrial bubble.
What does this mean in practice?
Are we at risk of losing our money? Is it an opportunity or a trap? Is everything a bubble? Is everything overvalued? Is it all just hype?
WHAT BEZOS SAID
During the Italian Tech Week in Turin, Jeff Bezos explained that AI is in a phase of an “industrial bubble.”
Not necessarily a dot-com style bubble—something that collapses dramatically in a few months—but rather a situation where:
(a) valuations are disconnected from fundamental economic data,
(b) every idea, regardless of quality, is being funded, and
(c) investors, out of overexcitement and fear of missing out on the next big trend, struggle to distinguish what’s truly valuable from what’s not.
And he gave the following example: startups with 5–6 employees receiving billion-dollar investments. Quite simply, he said, this is abnormal behavior that only occurs during periods of intense enthusiasm—i.e., bubbles.
But—and this is the key point—he emphasized that AI is real.
It’s not a scam, not just a fad. It’s a technology that will transform every industry—from healthcare and education to transportation and entertainment. And not just transform… it will accelerate everything.
And he made it clear:
“Industrial bubbles are not necessarily bad. They can lead to social benefits, like biotech in the ’90s. Even though many companies went bankrupt, technologies were developed that save lives to this day.”
OPENAI
Almost the same day, it was announced that OpenAI (yes, the company behind ChatGPT) closed a second funding round worth $6.6 billion.
That put the company’s valuation at $500 billion!
We’re talking about the most valuable private company in the world, surpassing even Elon Musk’s SpaceX. And the most interesting part? It wasn’t even an IPO. It didn’t go public. This valuation came from share sales between employees and investors—i.e., “second-hand” shares, not new capital raised.
And the investors are no small players. Giants like SoftBank, T. Rowe Price, Thrive Capital, and sovereign wealth funds from Abu Dhabi participated.
Another important detail: although approval was given to sell up to $10.3 billion worth of shares, only about two-thirds were actually sold. This is considered a positive sign for the company—it shows that existing shareholders didn’t want to sell. They believed the value would rise even further.
But… that doesn’t mean we’re not in a bubble. Because, as Bezos said:
Investing billions into companies with minimal revenue, based only on expectations, is the No.1 symptom of an industrial bubble.
INVESTMENT TAKEAWAYS
So, the big question: Is this bad? Does it affect us?
Yes and no.
If we’re trying to trade, to predict the next hype stock or grab quick profits, then yes—these numbers are dangerous. Because when the market runs on over-optimism, a correction eventually comes. And those who got in late are usually the ones who pay the price.
But if we’re long-term investors, disciplined, with a clear strategy and goals… then all of this is just background noise.
Our job when investing is not to predict when a bubble will burst. Our job is to stick to a disciplined plan.
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Bezos has his points too. I mean if this eye stuff becomes first a bubble for tech correction. We are going to see a record financial loss.
After a record financial gains!
And where is is Google ??
Google is a public company