US EditionSam Altman Calls AI a “Bubble” While Seeking $500B Valuation for OpenAI
Sam Altman warns investors of inflated AI valuations with OpenAI planning trillion-dollar infrastructure investments despite a $5 billion annual loss, highlighting uneven profitability in the AI sector.
- At a recent dinner, Sam Altman conceded `Yes, investors are overexcited about AI`, spooking tech stock investors and weighing on the Nasdaq, as he likened AI to a late-1990s internet bubble.
- Investor hype and rapid funding have inflated AI startup valuations beyond revenues, while rising talent pool and salaries push sector costs unsustainably high.
- Reports show Sam Altman, CEO of OpenAI, pursued $5 trillion–7 trillion for AI chip fabrication, Bloomberg reported trillions committed to data centers; OpenAI earns $1 billion monthly but faces $5 billion annual loss, and Palantir trades at 280 times forward earnings.
- Market watchers warn that a bubble pop could inflict significant harm across broader financial markets, urging investors to focus on fundamentals and draw parallels to past tech busts.
- Only tangible value will determine survivors, as Altman recently told TED's Chris Anderson that demand already surpasses infrastructure capacity, while Microsoft, Google, Meta, and Amazon's profits could shield them.
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Total News Sources12
Leaning Left2Leaning Right2Center3Last UpdatedBias Distribution43% Center
Bias Distribution
- 43% of the sources are Center
43% Center
L 29%
C 43%
R 29%
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