The AI bubble chatter has reached the fever pitch.
Many investors are concerned that the AI market may be overheating and there is a risk of relating to the 2000 dot-com bubble burst. Some wonder whether large-scale language models are actually strong enough to develop intimate tensions over the years. Large spending by some tech companies is not rewarded. And some are worried that less experienced investors are getting caught up in the hype.
According to CB Insights data, 50% of venture dollars were spent on AI startups in the first half of 2025. In those six months, AI funds exceeded all of the spending last year.
Last week, major tech stocks fell from alarms over the possibility of an AI bubble. Nvidia's revenues are on Wednesday as investors are looking for a faint light of good news.
This is a guide to the important events that have caused recent AI bubble anxiety.
Sam Altman's warning
Openai CEO Sam Altman warned earlier this month that people may be “overexcited” about AI.
“Are we at a stage where the entire investor is overly excited about AI? My opinion is yes,” he told reporters. “Is AI the most important thing that will happen for a very long time? My opinion is yes too.”
Altman said it was “unconventional” and “not reasonable” that some small AI startups are getting funding at high ratings.
“Someone is going to lose an incredible amount,” he said. “We're going to make who is who and a lot of people make incredible amounts.”
Other tech leaders got heavier after Altman's comments. Former Google CEO Eric Schmidt said it was “impossible” that this would be a bubble, but Alibaba co-founder Joe Tsai said he was “starting to see some sort of bubble” and said he was worried that the push to build data centers would outweigh demand.
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Openai released ChatGPT-5 earlier this month, and Altman called the update a “major upgrade” but got a warm response. Frustrating that the new bot is cold and impersonal, Altman has promised to reclaim the ChatGpt-4o for premium users.
MIT's eye-opening report
A recent report from MIT found that 95% of AI pilots are not increasing measurable financial savings or corporate profits. The authors of the report interviewed 150 executives, surveyed 350 employees and surveyed 300 AI projects. The impact is significant as it turns out that enterprise investments in generating AI are between $3 billion and $40 billion.
More than the failure of AI itself, the report has identified “learning gaps” that suppress potential savings. Employees and businesses don't know how to use technology optimally and leverage profits. Many companies use AI in marketing and sales if they can save more by aiding backend processes, the report found.
Meta's AI Restructuring
After spending millions and building a “super intelligence” AI team, Meta is splitting up internal AI devices. The four new teams will focus on research, training, products and infrastructure.
The Meta reported by the New York Times is considering downsizing within the AI division, and reports that some AI executives could leave. Trimming the head counts of such priority groups marks a major change for meta CEO Mark Zuckerberg. Mark Zuckerberg made waves by offering heartfelt salary and $100 million signature bonuses to AI talent.
Currently, Meta pumps its recruitment brakes. As the Wall Street Journal first reported, the company conducted employment freezes in its AI division. The spokesman told Business Insider it was part of a “basic organizational plan.”
The move has surprised some investors and raised questions about the future of the High-Tech Giants' AI investments. Meta's stock has grown by more than 25% since the start of the year.
