AI Investment Boom Sparks Dot-Com Bubble Comparisons

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2025-09-16 10:29:02

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Venture capitalist Jack Selby warns of an escalating AI investment bubble, drawing parallels to the dot-com era's unsustainable valuations. As billions FLOW into unproven startups, pricing models remain precarious—most services operate below cost, with inevitable price hikes likely to expose weak business models.

The current frenzy mirrors late-1990s patterns, where revenue-light companies commanded absurd valuations before the Nasdaq's 80% collapse. Selby predicts a similar reckoning could wipe out "tens if not hundreds of billions" in speculative AI investments.

Industry leaders echo these concerns. OpenAI's Sam Altman reportedly sees unsettling similarities between today's AI Gold rush and past tech frenzies, suggesting the sector may be approaching an inflection point.

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