OpenAI board chair Bret Taylor assessed that the artificial intelligence (AI) boom may be a bubble and predicted a correction will emerge within the next few years.
In an interview with U.S. business network CNBC in Davos, Switzerland, where the World Economic Forum (WEF) is being held, Taylor said on the 22nd (local time), "Right now AI is attracting both 'smart money' and 'dumb money,' and it may be a bubble."
He said, "As people recognize that AI will have a massive impact across the economy and various industries, money is pouring in, and in every area the number of competitors has increased tremendously." He added, "Competition is a good thing, and in the end the free market finds the best products and the highest value," predicting, "There will be a period of correction, consolidation, and restructuring over the next few years."
He added, "Without this kind of messy competition, innovation cannot happen."
Taylor said the current AI market resembles 1996, the early days of the internet's spread, and while it is clear that AI will have a massive impact on commerce, search, and payments like the internet did, he believes it will take time for infrastructure buildout and the evolution of the regulatory environment.
He said, "I am an AI optimist," adding, "I think we are at the starting point of the (AI growth) curve."