OpenAI CEO Sees Parallels Between AI Craze and Dot-Com Euphoria
Artificial intelligence may be the hottest technology story of the decade, but OpenAI’s Sam Altman believes the excitement is bordering on mania.
In a recent interview, he warned that the flood of investor money chasing AI could end up repeating the excesses of the late 1990s internet boom.
Unlike the dot-com era, however, today’s AI leaders already dominate global stock indexes and attract unprecedented amounts of capital. That has some on Wall Street arguing valuations are even more stretched than they were at the peak of the Nasdaq bubble two decades ago.
Growing Skepticism Among Industry Giants
Altman is far from alone in voicing caution. Veteran investors such as Ray Dalio and Joe Tsai, along with Apollo’s chief economist Torsten Slok, have each suggested that AI valuations are overheating. Slok went as far as to say today’s numbers may represent a bigger bubble than the one that imploded in 2000, when tech shares lost nearly four-fifths of their value in just over two years.
A Market Flooded With Cheap Rivals
Part of the concern stems from the rise of low-cost challengers abroad. Chinese startups like DeepSeek claim to train powerful AI models for just a fraction of the cost borne by U.S. firms. Meanwhile, Alibaba has introduced its own competitive system that relies on far less data, casting doubt on whether America’s enormous R&D spending can keep delivering outsized returns.
OpenAI’s Own Challenges
Even OpenAI has not been immune to scrutiny. Despite its runaway brand recognition and projections of $20 billion in annualized revenue, the company still isn’t profitable. Its latest flagship release, GPT-5, rolled out to mixed reviews, with some users saying it felt less intuitive than its predecessor. For skeptics, these bumps only add fuel to the argument that AI’s trajectory may not match the vast sums being poured into it.
What It Means for Investors
Much of the AI boom is reflected in the Nasdaq-100, tracked by the QQQ ETF. While the fund has delivered stellar returns over the past decade, its price-to-earnings multiple now sits near record highs, highlighting bubble concerns. At the same time, lower price-to-book levels and potential U.S. rate cuts could provide support, suggesting not all is froth.
The broader picture is a tug-of-war between long-term optimism and short-term excess. If history is any guide, the AI industry may eventually face a painful shakeout — though the survivors could become the defining companies of the next era of global tech.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
