What is the current sentiment around an AI bubble?

Several prominent tech leaders, including Sam Altman and Sundar Pichai, believe the AI sector is experiencing a bubble due to investor overexcitement.

How do experts compare the AI bubble to past events?

Comparisons are frequently made to the dot-com bubble of the internet era, noting both rational excitement and irrational exuberance.

What is an AI hallucination?

AI hallucinations refer to instances where AI technology generates inaccurate or nonsensical information, a significant issue in current AI development.

Home / Business and Economy / AI Bubble Talk: Tech Giants Sound Alarm

AI Bubble Talk: Tech Giants Sound Alarm

20 Nov, 2025

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Summary

Several prominent tech leaders believe the AI sector is currently in a bubble.
Comparisons are drawn between the current AI excitement and the past internet bubble.
Concerns exist about AI hallucinations alongside rapid development.

A growing number of influential tech executives are voicing concerns that the artificial intelligence sector is currently experiencing a bubble. This sentiment has been amplified by OpenAI CEO Sam Altman, who, in an August interview, acknowledged that investors are likely overexcited about AI, comparing the situation to the internet boom.

Mark Zuckerberg and former Intel CEO Pat Gelsinger have echoed these sentiments, with Gelsinger predicting the bubble could persist for several more years. Alphabet CEO Sundar Pichai also weighed in, stating that while AI's potential is rational, irrational elements are present. He warned that all companies would be affected if the bubble were to burst.

Pichai further addressed the persistent challenge of AI hallucinations, acknowledging that even state-of-the-art AI technology is prone to errors. This issue, combined with the talk of an economic bubble, highlights the complex and evolving landscape of artificial intelligence development.