Bezos brushes off concerns of an AI bubble: ‘You shouldn’t worry about it’

“Even if it does turn out to be a bubble, you shouldn’t worry about it because the bubble is driving investment and a lot of the investment is going to turn out to be very healthy,” Bezos told CNBC’s Andrew Ross Sorkin in an interview on “Squawk Box.”

Record valuations and deals driven by hefty investments in AI have fueled the AI boom, leading some to wonder if it’s the makings of a bubble that will eventually burst. Meanwhile, hyperscalers like Amazon, Microsoft and Google continue to invest billions on AI infrastructure, with spending expected to cross $700 billion this year.

Bezos acknowledged that the excitement around AI has meant that “every experiment is getting funded,” including potentially bad ideas.

“It’s because investors at this moment haven’t learned yet how to discriminate between good ideas and bad ideas, and that’s OK, because the good ideas will pay for all of the losers,” Bezos said. “So from a point of view of civilization, of society, these kinds of industrial cycles can actually be very healthy because they drive the technology forward.”

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