OpenAI Chair Bret Taylor Warns AI May Be a Bubble
Bret Taylor, co-founder of AI startup Sierra and chairman of OpenAI’s board, said Thursday that artificial intelligence is “probably” a bubble. Both smart and less experienced investors are pouring money into AI startups across the tech stack.
Market Correction and Consolidation Expected
Taylor said the free market will ultimately decide which AI companies succeed. He described himself as an AI optimist but expects a market correction and consolidation in the coming years.
“When everyone knows AI will have a huge impact across industries, money flows freely,” Taylor told Baner Club at the World Economic Forum in Davos. “Over the next few years, you’ll see corrections and consolidation, but innovation requires this kind of messy competition.”
Taylor’s Background
Taylor co-founded Sierra in 2023. The company builds and implements AI agents for customer service. In September, Sierra raised $350 million, reaching a $10 billion valuation.
Before Sierra, Taylor was co-CEO of Salesforce with Marc Benioff. He also chaired Twitter’s board, served as CTO at Facebook, and co-created Google Maps.
AI’s Long-Term Impact
Taylor said AI will significantly affect commerce, search, and payments. However, adoption will take time as companies adjust, regulations evolve, and infrastructure develops.
“I think we’re at the beginning of this curve,” Taylor said.
