Wall Street is not worried about an AI bubble. Sam Altman is

Addressing journalists at dinner at the end of last week, Altman has drawn a parallel between the frenzy of today’s AI and the Dotcom bubble of the 1990s, when the evaluations of the Internet company increased spectacular before crashing.

“When bubbles occur, intelligent people are overexcrited about a core of truth,” said Altman, in the comments reported by The Verge. “If you look at most of the bubbles in history, such as the technological bubble, there was a real thing. Technology was really important. Internet was really a big problem. People were excited.”

He noted certain startup assessments for companies collecting hundreds of millions of dollars with only staff of three people were “crazy”.

“Are we in a phase where investors as a whole are excited about AI? My opinion is yes,” he said. “Is AI the most important thing to happen for a very long time? My opinion is also yes. “

Altman warned that some investors are likely to become “very burned” as part of the media threw takes place, but argued that the long -term value created by artificial intelligence will prevail over short -term losses. He also repeated the word “Bubble” three times in 15 seconds, joking that comments should become a title.

Dan Ives de Wedbush, however, was not discouraged by the slightly lukewarm tone of Altman. He said Fortune That the “AI revolution will feed a technological bull market for the next two to three years at least.

“These are thousands of thousands of dollars in the construction of this fourth industrial revolution. There could be foam in certain areas of the private market for AI sellers, but ultimately, we do not consider it a bubble. It is a moment of 1996 with much more space to go, not a moment in 1999 in our opinion, “he said in an email.

Richard Saperstein, director of investments at Treasury Partners, has also ignored concerns, noting that technological actions with large capitalization remain the driving force of the market.

In a note Monday reported by BarronHe wrote that large technological companies “have led the market higher and will continue to dominate market performance”, citing the expectations of continuous profile growth, a strong reinvestment of cash flows and the expansion of their global scope.

Saperstein advised investors to remain fully invested in American stocks, with a particular emphasis on the names of high capitalization technologies. He stressed that the structural tail winds, including deregulation, hiking and favorable treatment for capital spending, which will believe that it will support both businesses and wider economic growth in the coming years.

No sign of slowdown in expenses

Investors have had a reason to encourage in recent weeks because large technological companies have declared profits that exceeded expectations. Microsoft, Alphabet and Meta have all displayed strong growth and have shown no sign of Rangement on AI.

The largest technological companies, including Microsoft, Amazon, Alphabet and Meta, have all increased their capital expenses to meet the growing demand for artificial intelligence. Altman’s OpenAi is no different.

“You should expect the OpenAi to spend billions of dollars for the construction of the data center in the not very distant future,” said Altman, in the comments reported by The Verge. “And you should expect a lot of economists to twist your hands, saying:” It’s so crazy, it’s so reckless “and we will say:” What do you know? Do our thing. “”

As IA expenses soar, there has been a concern for the flight that investment in AI could exceed sustainable growth. Industry figures, including the co -founder of Alibaba, Joe Tsai and the founder of Bridgewater Associates, Ray Dalio, have all expressed concerns about the trend.

Earlier this year, Dalio warned that the current cycle on Wall Street seemed “very similar” to that observed before the Bust of Dotcom in 1998 and 1999.

“There is a new major technology that will certainly change the world and will succeed. But some people were confusing that investments succeed,” said Dalio Dalio Financial time.

In a report last month, the chief economist of the global management of Apollo, Torsten Slok, went further, arguing that the current Boom of the AI could exceed the internet bubble of the 1990s. He noted that the 10 largest companies in the S&P 500 are now more overvalued compared to the fundamentals than during the peak of the Dotcom era.