TLDRs;
- Jeff Bezos described the current AI craze as an “industrial bubble” fueled by overzealous investors.
- He compared it to the early 2000s biotech boom, where failed startups still led to meaningful breakthroughs.
- Bezos said bubbles fund both “good and bad ideas,” but society ultimately benefits from the survivors.
- He stressed that AI will “change every industry,” calling it a once-in-a-generation technological shift.
Amazon founder Jeff Bezos has weighed in on the global AI frenzy, describing it as an “industrial bubble” that will ultimately yield major long-term benefits.
Speaking at Italian Tech Week 2025 in Turin on Friday, the billionaire noted that today’s surge of AI investment mirrors the dot-com and biotech booms of past decades.
Bezos said that while excessive capital is currently flowing into unproven ventures, such speculative cycles are often necessary to accelerate innovation.
“Investors don’t usually give a team of six people a couple billion dollars with no product, and that’s happening today,” he remarked. “But AI is real, and it’s going to change every industry. The benefits to society are going to be gigantic.”
Bezos’ tone was not dismissive but reflective. He acknowledged that speculative phases often create “noise” in the market, yet they also accelerate innovation by funding risky experiments that might otherwise never be attempted.
Comparing AI to Biotech’s Early Hype
Drawing parallels to the biotech bubble of the 1990s, Bezos said the same market euphoria that once funded dozens of failed startups also led to life-saving medical breakthroughs.
In Bezos’ view, AI represents a similar frontier: an enabling technology with far-reaching applications, from logistics and healthcare to education and entertainment. The challenge, he said, is separating genuine innovation from hype.
“Every experiment is getting funded right now,” Bezos observed. “Investors can’t always tell which ideas are the good ones. But that’s part of the process, society benefits when the winners emerge.”
He noted that this funding frenzy mirrors the internet boom that once sent Amazon’s stock soaring to $113 before crashing to $6 during the dot-com collapse.
AI’s Ubiquity Will Transform Every Sector
Bezos argued that AI’s reach will extend far beyond dedicated AI firms like OpenAI or Anthropic.
“It’s a horizontal technology, it’s going to touch every company, in every industry,” he said. “The biggest impact will not come from AI-first companies, but from AI-enabled ones.”
From manufacturing to customer service, the Amazon founder believes AI will redefine efficiency, accuracy, and creativity. But he also warned that successful integration will depend on leaders’ ability to adapt quickly while staying focused on enduring customer needs.
In line with his well-known business philosophy, Bezos urged entrepreneurs to think long-term.
“Be stubborn on the vision and flexible on the details,” he advised. “Reality always wins. You can’t fight it, you can only adapt to it faster than others.”
Optimism Amid the Hype
Despite acknowledging the speculative frenzy around AI, Bezos’ message was ultimately one of optimism. He praised the wave of entrepreneurial energy the technology has unleashed, particularly among young innovators.
He concluded that while investors may lose money during inevitable corrections, humanity stands to gain.
“The bubbles fund exploration,” Bezos said. “They create the conditions for invention. And even if many fail, the few that succeed make it all worthwhile.”
