Key Points

Amazon.com founder Jeff Bezos stated that while there are signs artificial intelligence is in an "industry bubble" phase, the technology is "real and will transform all industries." He told the audience that during bubble periods, funding flows to almost all ideas regardless of their merit, and "this situation may be happening now."

On October 3, 2025, at Italy Tech Week, Amazon.com founder Jeff Bezos (left) spoke with EXOR Group CEO and Ferrari Chairman John Elkann.

Amazon.com founder Jeff Bezos said on Friday that artificial intelligence is currently in an "industry bubble" phase, but the technology is "real and reliable" and will bring significant benefits to society.

The term "bubble" typically refers to periods when stock prices or company valuations become excessively inflated, disconnected from business fundamentals. One of the most famous bubble bursts in history was the dot-com bubble crisis of 2000, when internet company market capitalizations plummeted dramatically.

At Italy Tech Week in Turin, EXOR Group CEO John Elkann asked Bezos whether the current AI industry shows signs of a bubble.

The Amazon.com founder responded: "The current AI field can be categorized as an industry bubble."

Bezos outlined several key characteristics of bubbles, noting that when bubbles form, stock prices become "disconnected from corporate fundamentals."

Bezos added: "The second characteristic is that people become extremely excited, just like the current AI frenzy."

He told the audience that during bubble periods, all experiments or ideas receive funding support.

Bezos said: "Good or bad ideas all get investment. In this frenzied atmosphere, investors find it difficult to distinguish between good and bad ideas. This situation may be happening now."

"But this doesn't mean everything happening now is unreal. AI is real, and it will transform every industry."

Bezos cited an example of a company with only 6 employees receiving billions of dollars in funding support. He said this is an "extremely abnormal phenomenon," but such situations are indeed occurring today, though he did not specify which company he was referring to.

However, the billionaire also stated that fundamentally, industry bubbles might bring positive impacts. He used the biotech and pharmaceutical industry bubble of the 1990s as an example, noting that although many companies eventually went bankrupt, that bubble drove the development of multiple life-saving drugs.

Bezos stated: "Industry-nature bubbles are far from being so bad, and may even be beneficial. Because when the bubble dissipates and winners emerge, society will benefit from these innovative achievements."

"The AI field will be the same. This technology is real, and the benefits it brings to society will be tremendous."

AI Bubble Warnings Growing

Bezos is not the only important business figure warning about AI bubble risks. In August this year, OpenAI CEO Sam Altman stated that the AI market is in a bubble, and many investors have also expressed concerns.

Goldman Sachs Group CEO David Solomon said on Friday at Italy Tech Week that amid the AI boom, he has certain concerns about current stock market levels.

Solomon stated: "When (investors) feel excited, they tend to focus only on potentially positive aspects while ignoring potential risks that need attention... The market will eventually face adjustments, tests, and declines. The magnitude of adjustment will depend on how long this (bull market) run can continue."

Selwood Asset Management equity investment Chief Investment Officer Karim Moussalem said last week that "AI-related trading is beginning to replicate characteristics of major speculative frenzies in market history."