Sam Altman, the CEO of OpenAI, expresses concern about the current frenzy in AI investments, where startups are rapidly raising capital despite limited fundamentals. Altman acknowledges a “bubble” in valuations, yet he maintains that the long-term benefits of AI will prevail. He anticipates significant spending on datacenter construction, predicting that OpenAI will invest trillions to meet its growing demand for compute power. While tech giants like Microsoft and Amazon ramp up their capital expenditures to stay competitive in AI, experts recognize both froth and real demand in the market. Citi’s Rob Rowe notes that, unlike the dotcom era, many current AI companies have strong cash flows, distinguishing this boom from previous cycles. Concerns about over-investment exist, with Alibaba’s Joe Tsai highlighting the risks of unnecessary datacenter development. Overall, Altman believes that, despite potential investor losses, AI will ultimately result in immense societal value.
Source link
