Amazon founder Jeff Bezos just dropped a reality check on the AI hype machine. Speaking at Italian Tech Week in Turin, the billionaire declared artificial intelligence is showing signs of an 'industrial bubble' - but insisted the technology remains real and will deliver massive societal benefits. His comments come as AI valuations soar and investors struggle to separate promising startups from overpriced ventures.
Amazon founder Jeff Bezos isn't buying into the AI gold rush - at least not completely. Speaking at Italian Tech Week in Turin on Friday, the e-commerce pioneer delivered a sobering assessment of artificial intelligence's current market dynamics while maintaining his long-term faith in the technology's potential.
"This is a kind of industrial bubble," Bezos told Exor CEO John Elkann during an on-stage conversation, drawing parallels to the infamous 2000 dotcom crash that saw internet company valuations plummet after years of irrational exuberance.
The comparison isn't casual. Bezos lived through that earlier bubble burst, watching Amazon stock crater from over $100 to under $6 between 1999 and 2001. His company survived by focusing on fundamentals while competitors with unsustainable business models disappeared overnight.
Now he's seeing familiar warning signs. "Stock prices are disconnected from the fundamentals of a business," Bezos explained, outlining the classic bubble characteristics. "The second thing that happens is that people get very excited like they are today about artificial intelligence."
The funding frenzy is particularly telling. "Every experiment or idea gets funded," Bezos noted. "The good ideas and the bad ideas. And investors have a hard time in the middle of this excitement, distinguishing between the good ideas and the bad ideas."
That observation rings true across Silicon Valley, where AI startups are commanding astronomical valuations based on little more than promising demos and ChatGPT integrations. OpenAI recently closed a $6.6 billion funding round at a $157 billion valuation, while competitors like Anthropic and Perplexity have raised hundreds of millions despite uncertain revenue models.
But here's where Bezos diverges from typical bubble skeptics. "That doesn't mean anything that is happening isn't real," he emphasized. "AI is real, and it is going to change every industry."
This isn't mere optimism from someone watching from the sidelines. Amazon has invested heavily in AI infrastructure through its cloud division AWS, which powers many of the AI applications driving current market excitement. The company's Alexa voice assistant was an early consumer AI product, and Amazon Web Services now offers dozens of machine learning tools for enterprise customers.
