Investors are overexcited about AI, says OpenAI CEO Sam Altman

Sam Altman, CEO of OpenAI, has expressed concerns regarding the current surge in investments within the artificial intelligence sector, suggesting it may lead to a bubble reminiscent of the dot-com crash experienced in the late 1990s and early 2000s. During recent engagements and media discussions, Altman likened the current fervor surrounding AI startups to the irrational excitement that once characterized the internet boom. He stated, "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.” While he acknowledged the transformative nature of the technology, he cautioned that the accompanying hype and inflated valuations could leave numerous companies vulnerable. Altman highlighted the alarming trend of AI startups securing considerable funding, sometimes hundreds of millions, based on little more than a concept. He described these valuations as "insane" and emphasized that they do not ensure long-term success. Data from PitchBook underscores this investment explosion, revealing that U.S. AI startups raised $104.3 billion in just the first half of 2025, nearly matching the total raised by all startups throughout 2024. This year, nearly two-thirds of venture capital has been directed towards AI, a significant increase from 49% in the previous year. He urged both entrepreneurs and investors to prioritize solid fundamentals instead of riding the wave of momentum, warning that firms with fragile business models are likely to falter when the market eventually stabilizes. "Smart people get overexcited about a kernel of truth," Altman remarked. Despite his apprehensions about the overheating market, OpenAI itself is advancing rapidly. The company secured $40 billion in March, marking the largest private tech funding round to date and achieving a valuation of $300 billion. Its flagship product, ChatGPT, has seen a dramatic rise in popularity, attracting around 700 million weekly users, quadrupling its user base from the previous year and positioning it as the fifth most-visited website globally. Altman noted that the platform is on track to surpass Facebook and Instagram, aiming for third place, right behind Google and YouTube. To sustain this growth trajectory, OpenAI plans to invest trillions in building computing infrastructure and data centers over the coming years. While Altman acknowledged that some may perceive this strategy as "crazy" or "reckless," he remains committed to it. He also revealed that OpenAI is exploring the creation of a unique financial tool to support these ambitious projects. Looking ahead, Altman indicated that a public offering may be on the horizon. "I do think we have to go public someday, probably," he stated, while candidly admitting he might not be the best fit to lead OpenAI as a publicly traded entity. His comments highlight a critical tension within the AI sector: even as the technology progresses at an unparalleled rate, there are rising fears that the influx of capital may not be sustainable. For Altman, the challenge will be to balance swift growth with the necessary discipline to avoid the pitfalls of past technology booms.