Amazon (AMZN) founder Jeff Bezos says that there are signs of an “industrial bubble” but artificial intelligence is “realistic and changes every industry.” His e-commerce giant has been one of the heaviest investors in the burgeoning AI industry in recent years.
Exolo CEO John Elkan asked Bezos at the Italian Tech Week stage in Turin, Italy, if there are any signs of the current AI industry being in the bubble. “This is a kind of industrial bubble,” replied the Amazon founder. Bezos then laid out some of the key characteristics of the bubble, noting that when they happened, the stock price is “detached from the basics” of the business. “The second thing is that people are very excited about artificial intelligence, just like they do today,” Bezos said.
Other billionaires reflect Bezos’ idea that the Surging AI industry is a bubble that could be present at any time. On Friday, Goldman Sachs CEO David Solomon raised several concerns about the stock market level amid the AI hype. “When (the investors) are excited, they tend to think about good things that can go right, and they reduce what you can be skeptical of… There’s a reset, there’s a check at some point, there’s a drawdown,” Solomon said at the Italian Institute of Technology. “The scope depends on how long this (the bull run) lasts.”
In a constantly challenging AI race, several top American companies are throwing hats at the ring, throwing billions of people at AI data centers and other artificial intelligence innovations. Amazon is one of the biggest AI investors, but according to many analysts, increasing competition is a concern for AMZN stocks. Furthermore, Bezos’ comments seem to incite a bit of flames as they acknowledge the increased value of AI. Additionally, Amazon Web Services has the largest market share in the AI space, followed by Microsoft’s Azure and Alphabet Inc.’s Google Cloud Platform.
