In an “industrial bubble” but society for the benefit

Turin, Italy – Artificial intelligence is currently in an “industrial bubble” but technology is “real” and will bring great advantages to society, Amazon Friday, founder Jeff Bezos said on Friday.

The term bubble generally refers to a period of prices of inflated shares or evaluation of companies which have disconnected from the fundamental principles of a company. One of the most famous bubbles that broke out was the Dotcom 2000 crash where the value of Internet companies has dropped.

CEO of Exoro John Elkann asked Bezos on stage at Italian technology week in Turin, Italy, if there were signs that the current AI industry is in bubble.

“It’s a kind of industrial bubble,” said the founder of Amazon.

Bezos has established some of the key characteristics of the bubbles, noting that when they occur, the equity prices are “disconnected from the fundamental principles” of a company.

“The second thing that happens is that people are very excited as they are today about artificial intelligence,” added Bezos.

During bubbles, each experience or idea is funded, he told the public.

“Good ideas and bad ideas. And investors are struggling in the midst of this excitement, distinguishing good ideas and bad ideas. And this is probably happening today,” said Bezos.

“But that does not mean that something that happens is not real. The AI ​​is real, and it will change each industry.”

Bezos gave the example of a company of six people receiving billions of dollars in funding. It is “a very unusual behavior” and yet this kind of activity occurs today, he said without clearly indicating to which company it was referring.

The billionaire said, however, that ultimately industrial bubbles could be positive. He underlined the Buotech and the Bubble pharmaceutical company in the 1990s, which led to the development of certain vital drugs, even if many companies have finally gone bankrupt.

“The (bubbles) which are industrial are not as bad, it can even be good, because when the dust sets in and you see who are the winners, the companies benefit from these inventions,” said Bezos.

“This is what will happen here too. It’s real, the advantages for the AI ​​society will be gigantic.”

Bezos is not the only large commercial figure warning of a bubble of AI. In August, the CEO of Openai, Sam Altman, would have said that the AI ​​market was in a bubble, and many investors had also raised the problem.

Friday, the CEO of Goldman Sachs, David Solomon, expressed certain concerns concerning the stock market levels in the midst of the media of the AI.

“When (investors are) excited, they tend to think about the good things that can do well, and they decrease the things you should be skeptical that can go wrong … There will be a reset, there will be a check at some point, there will be a sample,” said Solomon during the Italian technological week. “The extent will depend on the duration of the duration of this (Bull Run).”

Karim Moussalem, director of investments in the actions of Selwood Asset Management, said last week that “the AI ​​trade began to look like one of the major speculative mania in market history”.