OpenAI chair Bret Taylor says AI is 'probably' a bubble, expects correction in coming years

Bret Taylor, co-founder of the AI startup Sierra, expressed concerns on Thursday regarding the possibility of an AI market bubble. Speaking at the World Economic Forum in Davos, Switzerland, Taylor remarked that both savvy investors and less informed backers are pouring funds into various AI competitors across the technology spectrum. As the chairman of OpenAI's board, Taylor believes that the true value within the AI sector will be revealed by the free market over time. He identifies himself as an optimist about AI's potential, stating, "When everyone knows that AI is going to have a huge impact on the economy across a huge range of industries and workflows, money is plentiful." Looking ahead, Taylor anticipates a market correction in the coming years, likely accompanied by consolidation within the industry. He emphasized that while this competitive landscape may seem chaotic, it is essential for fostering innovation. Taylor co-founded Sierra in 2023, focusing on developing and deploying AI agents for customer service, and recently secured $350 million in funding, elevating the company's valuation to $10 billion. Before his venture with Sierra, Taylor held significant roles in the tech industry, including co-CEO of Salesforce and board chairman of Twitter, now known as X. He has also served as the chief technology officer at Facebook, now Meta, and played a crucial role in the creation of Google Maps. Taylor foresees AI making a substantial impact across various sectors, including commerce, search, and payments, but acknowledges that widespread adoption takes time, along with regulatory advancements and necessary infrastructure development. "I think we're at the beginning of this curve," he concluded.