Sam Altman warns that investors may be overexcited about AI while simultaneously planning massive investments in data centers. Altman and competitors like Dario Amodei predict artificial general intelligence could arrive soon, driving intense investor interest. Market gains are highly concentrated: more than a third of the S&P 500 market cap sits with seven large tech firms that continue to show revenue growth. Startups such as OpenAI and Anthropic are generating enormous private wealth outside public markets. Historical bubble bursts can lead to investor lawsuits and heightened government scrutiny, and current AI euphoria has already contributed to tech selloffs.
None other than Sam Altman is opining that investors are " overexcited about AI." Yet, as my colleague Sharon Goldman points out, Altman also says he expects to invest trillions of dollars in building out data centers in the coming years. A man who compares his latest product launch to the Death Star isn't one who shies away from hyperbole.
Bubbles can take different forms. The dot-com bubble enveloped hundreds of startups that had people bidding for groceries and buying dog food from a sock puppet, few of whom made profits. This time around, the wealth of the many is being funneled to a few. More than a third of the S&P 500's market cap comes from the "Magnificent Seven"- Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. That's been true for some time and, unlike many dot-com disasters, these companies show real revenue growth.
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