Bret Taylor: We’re in an AI Bubble, But That’s Okay
Matilda
Bret Taylor: We’re in an AI Bubble, But That’s Okay
Why Bret Taylor Thinks the AI Bubble Is “Okay” When asked about the parallels between today’s AI wave and the internet boom, Taylor explained that both excitement and risk can coexist. Image Credits:Thibault Camus / AP Photo “I think it is both true that AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future,” Taylor said. “I think we’re also in a bubble, and a lot of people will lose a lot of money.” His comments echo what many industry veterans have been hinting at: explosive innovation often comes with speculative overinvestment. Lessons From the Dot-Com Era Taylor compared the AI bubble to the late ‘90s dot-com boom. Back then, companies were raising massive funding rounds with little more than an idea. Many failed when the bubble burst, but the survivors — Amazon, Google, eBay — went on to reshape the economy. He suggests AI is following a similar trajectory. Startups may rise and fall quickly, but the foundational tech…
