Former Intel CEO Pat Gelsinger says AI is a bubble that won't pop for 'several years'

Pat Gelsinger, the former CEO of Intel, has weighed in on the heated discussion surrounding the artificial intelligence market, declaring it a bubble. In an interview with CNBC's 'Squawk Box', Gelsinger stated, "Are we in an AI bubble? Of course. We're hyped. We're accelerating. We're injecting enormous leverage into the system." Despite acknowledging the bubble, Gelsinger predicted it would not burst for several years. His remarks come amid growing concerns among investors and analysts regarding the sustainability of the AI market. Questions are being raised about whether substantial investments in AI infrastructure by tech giants will yield significant returns, and if the current valuations of these companies are justified. Gelsinger noted that while there has been a significant shift towards AI within the industry, businesses have yet to realize substantial benefits from these advancements. After stepping down from Intel in December 2024 due to challenges in the competitive AI chip landscape, Gelsinger now serves as a general partner at Playground Global, a venture capital firm. Reflecting on his tenure at Intel, he acknowledged that the company had made a series of poor decisions over the last decade and was slow to adapt to AI developments. Other influential figures in tech have also hinted at the presence of an AI bubble. OpenAI's CEO, Sam Altman, has expressed similar sentiments, and Alibaba co-founder Joe Tsai remarked that he is starting to observe signs of a bubble. In contrast, Jensen Huang, CEO of Nvidia, which has thrived amid the AI boom, has rejected parallels between the current AI landscape and the dot-com bubble of the early 2000s.