"At OpenAI DevDay 2025, Altman told the press in a Q&A that while the AI sector has some "bubbly" qualities, which may lead to overinvestment, the investment cycle is a normal part of any technological revolution, and it doesn't contradict the value that being built in AI space. "People will overinvest in some places," said Altman. "There will be numerous bubbles and corrections over that period, but what I don't think [is that] this is totally divorced from reality -- there's a real thing happening here.""
"These comments come at a time when the ROI on AI has yet to be proven, with multiple studies suggesting that despite hefty investments, the return remains unclear. For example, an MIT study found that 95% of enterprises attempting to harness the technology aren't seeing measurable results in revenue or growth. While Gaurav Gupta, Gartner's VP Analyst in Emerging Trends and Technologies, acknowledges that AI ROI has yet to be proven"
The popularity of generative AI technologies has driven unprecedented investment in companies, infrastructure, and solutions. That surge has raised concerns about overinvestment and the possibility of an AI bubble bursting. The AI sector shows "bubbly" qualities that may produce bubbles and corrections, while investment cycles remain a normal part of technological revolutions and do not negate the real value being created. Multiple studies indicate ROI remains unclear despite heavy spending; an MIT study found 95% of enterprises attempting to harness the technology are not seeing measurable revenue or growth. Analysts note a long road remains before LLMs and other AI solutions reach full potential, which continues to drive investment.
Read at ZDNET
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