OpenAI Chair Calls AI A Bubble With Real Staying Power

OpenAI board chair Bret Taylor is leaning into the idea that we're in an AI bubble and he's fine with it. In a chat with The Verge, Taylor said it's possible for two things to be true at once: the hype will burn some investors, but AI will still change the world.

I think it is both true that AI will transform the economy and I think we're also in a bubble, and a lot of people will lose a lot of money, he said. Both are absolutely true at the same time.

Taylor compared today's frenzy to the dot-com boom. Yes, there were big busts like Pets.com, but over time the internet created giants like Amazon AMZN and Google GOOG. He sees AI on the same path some noise now, but enormous value ahead once the dust settles.

We're just in the early days, Taylor said. There isn't yet a vendor for every problem you have in your business. So either you wait, or you build it yourself.