Jeff Bezos Agrees AI Bubble is Real

Amazon founder Jeff Bezos has acknowledged that AI is in a bubble, but insisted that its impact on society will be profound and positive. Speaking at Italian Tech Week in Turin, he called the phenomenon an “industrial bubble” — contrasting it with financial bubbles like the 2008 crisis.

“This is real. The benefits to society from AI are going to be gigantic,” Bezos told the conference audience. He argued that in such times of fervent investment, “every experiment gets funded … the challenge is seeing investors having a hard time distinguishing between the good ideas and the bad ideas.”

Bezos drew parallels to the dot-com and biotech bubbles, saying that although many companies failed, the innovations and infrastructure investments that survived delivered long-term value.

He described the current AI surge as a similar “industrial” bubble that, once the hype settles, will leave lasting societal benefits.

He also noted that while AI valuations may seem disconnected from fundamentals now, observing which players endure will reveal the real winners. Despite cautioning about hype and overvaluation, Bezos maintained optimism, calling the current era a “gifted moment” to be alive during multiple technological revolutions.

While some critics warn about speculative excess, Bezos’ framing casts the AI bubble as generative — a period of overinvestment that could catalyze genuine breakthroughs and infrastructure that benefits society in the long run.