Jeff Bezos Calls AI Boom A Bubble — But Says It's A Good One - Meta Platforms (NASDAQ:META), Amazon.com (NASDAQ:AMZN)

Amazon.com Inc. (NASDAQ:AMZN) founder Jeff Bezos acknowledged that artificial intelligence is in "a kind of industrial bubble" but stressed that the technology is real and will deliver "gigantic" benefits to society.

Bezos Calls AI Bubble Constructive

At Italian Tech Week in Turin on Friday, Bezos described the current surge in AI investment as fitting the definition of a bubble, noting that valuations are frequently detached from the underlying business fundamentals.

He explained that during bubbles, every experiment gets funded — the good ideas and the bad ideas, adding that it becomes difficult for investors to separate winners from losers.

"That's also probably happening today," he noted.

However, the Amazon founder said that this does not diminish AI's transformative potential. "AI is real and it is going to change every industry," he stated, calling the hype cycle a natural stage of innovation.

Lessons From Past Industrial Bubbles

Bezos compared the present AI boom to the biotech bubble of the 1990s, when many startups collapsed but breakthroughs in medicine and drug development ultimately benefited society.

"The [bubbles] that are industrial are not nearly as bad, it can even be good, because when the dust settles and you see who are the winners, societies benefits from those inventions," he said.

Zuckerberg And Altman Raise Bubble Concerns

Bezos's remarks echo concerns from other tech leaders, including Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg and OpenAI CEO Sam Altman, both of whom have admitted the industry shows bubble-like traits.

Zuckerberg warned earlier this month that today's AI spending frenzy could mirror the dot-com boom-and-bust cycle, but suggested that AI development might avoid a collapse if both model capabilities and demand continue to grow annually.

Investors Weigh In On AI Frenzy

Wall Street remains divided. Goldman Sachs CEO David Solomon on Friday cautioned that market enthusiasm could lead to a "reset" in valuations, reported CNBC.

Earlier this month, investment firm GQG Partners compared the AI boom to the 1999 dot-com crash, citing inflated fundamentals.

By contrast, Wedbush analyst Dan Ives dismissed collapse fears, calling AI the "fourth industrial revolution" and predicting the industry is still in the "second inning."

Benzinga's Edge Stock Rankings rank Amazon's growth in the 92nd percentile, underscoring its strong performance relative to top AI peers like META.