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Meta CEO Mark Zuckerberg has acknowledged that an AI bubble is a real possibility and even compared it to past bubbles like the Railroad Mania and the dot-com bubble. However, Zuckerberg also stated that not investing heavily in AI would be a greater mistake because it could lead to missing the advent of \u201csuperintelligence.\u201d<\/p>\n<\/div>\n
\u200bWhen asked about the growing talk of the AI industry being in a bubble in an episode of the Access podcast, Zuckerberg answered, \u201cI think it’s quite possible.\u201d<\/p>\n<\/div>\n
\u200bZuckerberg pointed out past bubbles like the 19th-century railroad mania and the 1990s dot-com bubble, where companies borrowed heavily to build infrastructure that outpaced demand. When a reality check hit them due to recessions or slower adoption, many of them couldn\u2019t service their debt and went out of business. However, the physical networks created during the bubbles later proved invaluable.<\/p>\n<\/div>\n
\u200b\u201cI think it’s impossible to predict what will happen here. There are compelling arguments for why AI<\/a> could be an outlier. If the models keep growing in capability year over year and demand keeps growing, then maybe there is no collapse. But there is definitely a possibility, based on past large infrastructure buildouts and how they led to bubbles, that something like that could happen here,\u201d Zuckerberg added.<\/p>\n<\/div>\n \u200bZuckerberg, however, still believes in heavily spending on AI, saying, \u201cIf we end up misspending a couple hundred billion dollars, that\u2019s going to be very unfortunate obviously. But I would say the risk is higher on the other side.\u201d<\/p>\n<\/div>\n \u200bThe comments made by Zuckerberg<\/a> echo a similar sentiment shown by OpenAI <\/a>CEO Sam Altman just a few weeks back.<\/p>\n<\/div>\n \u200bWhile referring to AI as a kernel of truth in an interaction with The Verge, Altman<\/a> said, \u201cWhen bubbles happen, smart people get overexcited about a kernel of truth.\u201d<\/p>\n<\/div>\n \u200b\u201cAre we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,\u201d he added.<\/p>\n<\/div>\n\u200bSam Altman on AI bubble:<\/h2>\n