Bret Taylor, board chair at OpenAI and CEO of AI agent startup Sierra, acknowledged in a recent interview with The Verge that the current AI landscape resembles a bubble—but emphasized that such a phase is not necessarily a bad thing. Speaking on the same topic as OpenAI CEO Sam Altman, who recently warned that “someone is going to lose a phenomenal amount of money in AI,” Taylor agreed with the sentiment. “I think it is both true that AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future,” Taylor said. “I think we’re also in a bubble, and a lot of people will lose a lot of money. I think both are absolutely true at the same time, and there’s a lot of historical precedent for both of those things being true at the same time.” He drew a direct parallel to the dot-com bubble of the late 1990s, noting that while the collapse led to massive losses for many startups and investors, the underlying vision of the internet was ultimately validated. “All the people in 1999 were kind of right,” Taylor observed. “They believed in the future of the internet, and they were correct—just not all the companies that were built at the time survived.” Taylor’s perspective reflects a broader view among AI leaders: while excessive hype and overinvestment may lead to inevitable corrections, the long-term potential of AI remains enormous. He sees the current surge in AI spending and innovation as a natural phase of technological disruption, one that, despite its risks, is driving real progress and laying the foundation for lasting change.