Amazon founder Jeff Bezos has likened the current artificial intelligence (AI) boom to an “industrial bubble,” cautioning that speculative fervor is funding both promising and dubious ideas alike. Speaking at Italian Tech Week in Turin on October 3, 2025, Bezos noted that during such bubbles, “every experiment or idea gets funded, the good ideas and the bad ideas,” and investors struggle to distinguish between them. For investors, tech leaders, and AI skeptics searching Jeff Bezos AI bubble, industrial bubble AI 2025, or Bezos Italian Tech Week speech, Bezos drew parallels to the 1990s biotech boom, where many ventures failed but societal gains like life-saving drugs endured. “That’s what’s going to happen here too,” he added, affirming that AI is “real” and poised to “change every industry” with “gigantic” benefits to society. His remarks, delivered alongside Exor CEO John Elkann, come amid a tech rally where AI stocks like Nvidia have surged 150% year-to-date, prompting warnings from figures like Goldman Sachs CEO David Solomon about potential “drawdowns.”
Bezos, whose Amazon has invested billions in AI through AWS, distinguished this as an “industrial bubble” rather than a purely financial one, suggesting that while stock prices may disconnect from fundamentals, the underlying innovations will endure.
Bezos on the Bubble: Frenzy Funding Good and Bad Ideas
During the panel, Bezos explained that industrial bubbles foster experimentation, even if many ideas flop. “The second thing that happens is that people get very excited like they are today about artificial intelligence,” he said, noting the challenge in separating viable projects from hype. He cited the 1990s biotech bubble, where investors lost money on failures, but breakthroughs like new drugs emerged. “When the dust settles and you see who the winners [are], societies benefit from those inventions,” Bezos remarked. For AI, he affirmed, “AI is real, and it is going to change every industry. The benefits to society from AI are going to be gigantic.”
Bezos’ comments align with similar warnings from OpenAI CEO Sam Altman, who in August 2025 described AI as potentially in a bubble but “the most important thing to happen in a very long time.” Goldman Sachs CEO David Solomon, speaking at the same event, echoed concerns about overheated AI stocks, predicting a possible “drawdown” but stopping short of calling it a bubble.
Implications: A Bubble with Lasting Impact?
Bezos’ “industrial bubble” label suggests AI’s hype cycle—fueled by Nvidia’s 150% stock surge and $74 billion in ETF inflows—may lead to corrections, but the technology’s foundational value will persist, much like the internet after the dot-com crash. For investors, it’s a reminder to focus on fundamentals amid excitement; for innovators, a call to build enduring solutions.
Conclusion: Bezos’ Balanced Take on AI’s Frenzy
Jeff Bezos’ AI “industrial bubble” warning tempers hype with realism: Frenzied funding may burst, but the tech’s transformative power endures. As he put it, “AI is real, and it is going to change every industry.” For the AI ecosystem, it’s a sobering yet optimistic note—ride the wave, but anchor to value. CNBC
