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OpenAI Chair Says AI Bubble Is Good for Innovation
2 min read OpenAI chair Bret Taylor says we are in an AI bubble—but that’s not a bad thing. Bubbles, he argues, fuel capital, talent & breakthroughs that outlast the hype. September 15, 2025 13:55
Bret Taylor, OpenAI’s board chair, just dropped a take that will ruffle both optimists and skeptics: yes, we’re in an AI bubble.
But unlike the dot-com crash narrative that usually follows that word, Taylor argues bubbles aren’t inherently destructive—they can accelerate innovation by funneling capital and talent into emerging sectors. In his words, “a bubble can create real companies.”
Why this matters: The AI market right now is flush with massive investments, sky-high valuations, and a steady stream of startups promising the “next big breakthrough.” A bubble means risks of hype-driven failures—but it also means rapid infrastructure building and experimentation that could leave behind long-lasting winners (think Amazon and Google post-dot-com).
The subtext: even OpenAI’s own rise has been fueled by this wave of money and attention. Taylor is essentially signaling that while the froth may burst, the foundations being laid—chips, models, and ecosystems—will outlive the bubble cycle.
Hot take: The AI boom may rhyme with history, but if the crash comes, it won’t wipe out AI—it’ll just separate enduring players from hype-chasers.
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