"I think we're also in a bubble, and a lot of people will lose a lot of money. I think both are absolutely true at the same time, and there's a lot of historical precedent for both of those things being true at the same time."
"'Someone is going to lose a phenomenal amount of money,' Altman said during a dinner for journalists, The Verge reported. 'We don't know who. And a lot of people are going to make a phenomenal amount of money.'"
"The fallout of the dotcom bubble burst in 2000 was weighty: In March, the NASDAQ rose to its peak of 5,048 units, only to plummet to 1,139.90 units in October, a 77% plummet. The downturn, by the time it ended in 2002, had wiped out about $5 trillion in market capitalizations."
AI will transform the economy and is expected to create huge amounts of economic value, similar to the internet's impact. At the same time, investor enthusiasm has inflated valuations, producing an AI bubble that will cause substantial losses for many investors. Industry leaders and economists warn that some firms are overvalued and that a hype cycle will create both major winners and losers. Historical precedent, including the dotcom crash that erased trillions in market capitalization, shows how rapid market corrections can follow speculative booms. The coexistence of transformative potential and financial risk defines the current AI investment environment.
Read at Fortune
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