Khaberni - Jeff Bezos, chairman of Amazon, said that spending on artificial intelligence is like an "industrial bubble" that may lead to wasting investments, but it will also contribute to improving society's condition.
In reference to companies that receive billions of dollars in funding before they have a product, Bezos said: "When people get overly excited, as is the case today with artificial intelligence for example, every experiment is funded, every company is funded, (including) both good ideas and bad ideas."
He added: "Investors find it difficult amid this excitement to distinguish between good and bad ideas," according to a report by Bloomberg, which was reviewed by "Al Arabiya Business".
However, Bezos, during the "Italian Technology Week" in Turin on Friday, said that artificial intelligence will change every industry and improve the productivity of "every company in the world".
He pointed out that what is happening now is an "industrial bubble" similar to the biotech bubble in the nineties, where companies went bankrupt and investors lost their money, but "we got some life-saving drugs", also referring to the internet bubble (known as "dot-com") a quarter of a century ago as a period of intense investment that benefits the world today.
Companies developing artificial intelligence, as well as surrounding technology companies, from data centers and chips to applications, receive massive funding. As for what is called the new cloud providers, who provide major tech companies with additional computing power and access to specialized chips for running artificial intelligence, they are funded even before building their own infrastructure.
The enthusiasm surrounding artificial intelligence and its potentials has led to huge valuations for these companies. A subsidiary of BlackRock is in talks to buy "Aligned Data Centers" in a deal that could be valued at about $40 billion, according to Bloomberg on Friday.
"OpenAI", the manufacturer of the famous chatbot "ChatGPT", has become the highest-valued private company with an evaluation of $500 billion in a recent secondary stock sale.
Some investors have sounded the alarm about the amount of money flowing into artificial intelligence ecosystem companies. The chief investment officer at "GIC Pte" this week said there is an "enthusiasm bubble" forming, especially in investing in early-stage AI ventures.
Bezos advised looking to the distant future saying: "When things calm down and you see who the winners are, society will benefit from these inventions," adding: "That's what will happen here as well. It is real, the benefits of artificial intelligence to society will be enormous."
