Jeff Bezos (AMZN) calls AI a bubble, but sees potential
1. AI is in a Bubble — but it’s a productive one
On Oct 2, at Italian Tech Week 2025, Bezos said the current wave of AI investment is an “industrial bubble” — meaning billions are being poured into every AI idea, good or bad.
But unlike financial bubbles that just inflate prices, industrial bubbles create lasting infrastructure and innovation.
“This is the good kind of bubble,” Bezos said. “AI is real, and it’s going to change every industry. But there’s a lot of noise — lots of bad ideas will get funded alongside the good ones.”
He compared it to the dot-com boom and the biotech surge, both of which led to major innovations despite mass failures.
2. Long-term confidence in AI
Bezos emphasized he’s not skeptical about AI’s potential — only about how the current frenzy is being managed.
He believes AI will redefine every sector of the economy and unlock huge productivity gains.
3. Data centers in space: Bezos’s futuristic idea
In the same discussion, Bezos outlined a vision where data centers could one day be built in space — perhaps within 10–20 years.
He explained that outer space offers:
- Continuous solar energy
- No weather interruptions
- Potentially lower long-term environmental impact
He noted that Blue Origin (his aerospace company) could play a role in building that kind of infrastructure — though he acknowledged it’s not feasible yet due to cost and technical limitations.
4. Big picture takeaway
- Short term: AI is overhyped — too many players, too much money.
- Medium term: Many failures ahead.
- Long term: Enormous value and innovation once the “dust settles.”