The rise of artificial intelligence (AI) has drawn comparisons to the dot-com era of the late 1990s, with some experts labeling it a bubble. OpenAI chairman Bret Taylor agrees that there is “lots of snake oil” in the market, but he also believes that there are real value-generating companies being created.
Taylor notes that the dot-com era often gets remembered for its failures, such as Pets.com and Webvan, rather than successes like Amazon and Google. However, when looking at the current market’s performance, Taylor suggests that many of the hype-filled companies may have been justified in their exuberance. In fact, some of the tech giants we use today, including Amazon and eBay, were born out of this era.
AI is creating a similar phenomenon, with venture capital firms investing billions into AI startups and Big Tech pouring tens of billions into AI infrastructure and talent. The market fervor has led some to predict massive gains for companies like Nvidia, which recently hit a $4 trillion market cap due to demand from AI companies. However, not everyone shares Taylor’s optimism.
Sam Altman, another prominent expert in the field, calls it a bubble and warns that smart people can get overexcited about a kernel of truth. He believes that investors will suffer more than they did during the dot-com crash, but also predicts that some people will make phenomenal amounts of money from AI startups.
Taylor, however, takes a more positive stance. He points to the success of ChatGPT and other B2B-focused AI software companies as examples of sustainable growth. Taylor believes that there is real value being created in the AI market and that some companies will stick around.
While there are concerns about the potential for AI bubble bursting, Taylor’s assessment suggests that there may be more winners than losers in this era. As with any market phenomenon, only time will tell if Taylor’s predictions prove correct.
Source: https://www.businessinsider.com/openai-bret-taylor-ai-similar-dot-com-2025-8