Jeff Bezos dismissed concerns about an artificial intelligence bubble on Wednesday, telling CNBC that the wave of spending flowing into the sector will produce lasting benefits regardless of how valuations shake out. “Even if it does turn out to be a bubble, you shouldn’t worry…
out it because the bubble is driving investment and a lot of the investment is going to turn out to be very healthy,” Amazon’s founder told CNBC’s Andrew Ross Sorkin on “Squawk Box.” The current AI enthusiasm has created conditions where, as Bezos put it, “every experiment is getting funded,” extending to ventures that may ultimately prove unworthy of the capital. He attributed this to investors not yet having developed the ability to tell strong ideas from weak ones, but said that outcome was acceptable. “It’s because investors at this moment haven’t learned yet how to discriminate between good ideas and bad ideas, and that’s OK, because the good ideas will pay for all of the losers,” he said
Those comments land amid a broader industry reckoning: soaring valuations and headline-grabbing deals have prompted growing speculation about whether AI’s trajectory is sustainable. CNBC reports that tech giants such as Amazon, Microsoft, and Google show no signs of pulling back on their AI infrastructure outlays, with cumulative industry spending on track to exceed $700 billion this year