Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Amazon founder argues that while AI valuations may soar, the long-term benefits to society will be immense
Jeff Bezos asserted that the current rush of investment in artificial intelligence resembles an “industrial bubble” — but one that may ultimately deliver profound societal benefits.
Speaking at Italian Tech Week in Turin on October 3, he acknowledged overheated market valuations and speculative capital flows, while maintaining that AI’s core promise remains real and vastly transformative.
Bezos described how, in moments of market euphoria, “every experiment gets funded, every company gets funded — the good ideas and the bad ideas,” making it difficult for investors to separate substance from hype.
He drew a parallel to Amazon’s own history during the dot-com bubble, when the company’s share price plunged from $113 to $6 despite improving business fundamentals.
“That’s the hallmark of a bubble — the stock prices can be completely disconnected from the fundamentals of the business,” he said.
Yet Bezos argued that this particular bubble can be constructive rather than destructive.
He contrasted it with dangerous financial bubbles like the 2008 banking crisis, and aligned it with industrial bubbles of the past — such as in biotech or fibre-optic infrastructure — which, though fraught with failures, often paved the way for breakthroughs.
“They can even be good,” he said, because when the dust settles, the true winners yield inventions from which society benefits.
“This is real.
The benefits to society from AI are going to be gigantic”.
His remarks were echoed earlier at the same event by Goldman Sachs Chief Executive David Solomon, who warned of overenthusiastic valuations and predicted that some capital could fail to realize returns.
Still, Solomon acknowledged the underlying potential of AI to drive productivity across industries.
Beyond the present frenzy, Bezos offered a glimpse into his long view of technology’s trajectory.
He predicted that vast solar-powered AI data centres will ultimately be built in space, and that millions may choose to live off-planet in the coming decades — inspired by advances in robotics and AI.
He called the moment “a golden age,” emphasizing that rare opportunities have arisen to shape the future.
While caution is warranted in a market flush with speculation, Bezos’ message underscores a confidence rooted in foundational technology and long horizons.
He urged investors and entrepreneurs to calibrate ambition with discipline, and to trust that reality—“unbeatable and undefeated”—will triumph despite noise and hype.
Speaking at Italian Tech Week in Turin on October 3, he acknowledged overheated market valuations and speculative capital flows, while maintaining that AI’s core promise remains real and vastly transformative.
Bezos described how, in moments of market euphoria, “every experiment gets funded, every company gets funded — the good ideas and the bad ideas,” making it difficult for investors to separate substance from hype.
He drew a parallel to Amazon’s own history during the dot-com bubble, when the company’s share price plunged from $113 to $6 despite improving business fundamentals.
“That’s the hallmark of a bubble — the stock prices can be completely disconnected from the fundamentals of the business,” he said.
Yet Bezos argued that this particular bubble can be constructive rather than destructive.
He contrasted it with dangerous financial bubbles like the 2008 banking crisis, and aligned it with industrial bubbles of the past — such as in biotech or fibre-optic infrastructure — which, though fraught with failures, often paved the way for breakthroughs.
“They can even be good,” he said, because when the dust settles, the true winners yield inventions from which society benefits.
“This is real.
The benefits to society from AI are going to be gigantic”.
His remarks were echoed earlier at the same event by Goldman Sachs Chief Executive David Solomon, who warned of overenthusiastic valuations and predicted that some capital could fail to realize returns.
Still, Solomon acknowledged the underlying potential of AI to drive productivity across industries.
Beyond the present frenzy, Bezos offered a glimpse into his long view of technology’s trajectory.
He predicted that vast solar-powered AI data centres will ultimately be built in space, and that millions may choose to live off-planet in the coming decades — inspired by advances in robotics and AI.
He called the moment “a golden age,” emphasizing that rare opportunities have arisen to shape the future.
While caution is warranted in a market flush with speculation, Bezos’ message underscores a confidence rooted in foundational technology and long horizons.
He urged investors and entrepreneurs to calibrate ambition with discipline, and to trust that reality—“unbeatable and undefeated”—will triumph despite noise and hype.
