TLDR
- Bezos told CNBC that even if an AI bubble forms, the investment will still drive healthy technological progress
- He compared the AI boom to the 1990s biotech bubble, saying society kept the benefits even after the crash
- Bezos dismissed fears of AI-driven job losses, saying the technology will “elevate” workers, not replace them
- Amazon is cutting 16,000 corporate jobs this year while allocating $200 billion in capex to AI
- Bezos launched a new AI startup, Project Prometheus, in November with $6.2 billion in funding
Jeff Bezos made headlines this week by pushing back against two of the biggest fears surrounding artificial intelligence: a market bubble and mass job losses.
Speaking on CNBC’s Squawk Box, the Amazon founder said people shouldn’t panic about the possibility of an AI bubble, arguing that the money being poured into the sector will ultimately benefit society regardless of what happens to individual investments.
Why Bezos Is Not Worried About an AI Bubble
“Even if it does turn out to be a bubble, you shouldn’t worry about it because the bubble is driving investment and a lot of the investment is going to turn out to be very healthy,” Bezos said.
He compared the current AI frenzy to the biotech boom of the 1990s. That era ended in a market crash, but the drugs and treatments developed during that period remained. Bezos said AI will follow a similar path.
He acknowledged that the current excitement means “every experiment is getting funded,” including bad ideas. But he argued the winning ideas will cover the losses, pushing civilization forward in the process.
Hyperscalers like Amazon, Microsoft, and Google are expected to spend over $700 billion combined on AI infrastructure this year. OpenAI’s valuation has ballooned to more than $850 billion, and even its CEO Sam Altman has warned investors may be “overexcited.”
Bezos on Jobs and Regulation
Bezos also addressed concerns about AI taking jobs. A recent Pew Research Center survey found half of U.S. adults are more concerned than excited about AI. Bezos called those concerns wrong.
“What’s really going to happen is that it’s going to elevate all of these people,” he said, arguing AI will boost productivity and create deflation across goods and services.
He did add a caveat. The benefits of AI will only materialize if governments “don’t hamstring it with regulation too early.”
His comments come as Amazon itself cuts 16,000 corporate jobs globally in 2026, partly to find AI efficiencies. The company is simultaneously planning to spend $200 billion on AI-related capital expenditures this year.
Amazon currently holds a consensus Strong Buy rating from 46 Wall Street analysts, with an average price target of $318.21, implying around 20% upside from current levels.
Bezos, whose net worth is estimated at $272 billion, now divides his time between Amazon, his rocket company Blue Origin, and his new AI startup Project Prometheus.
Project Prometheus launched in November with $6.2 billion in funding. The company is focused on building AI models for physical tasks like engineering, manufacturing, and drug design.
Bezos described the system as building an “artificial general engineer” — essentially a modern version of computer-aided design software.
He chose to make it a standalone company rather than folding it into Amazon or Blue Origin, saying the idea “deserves its own special focus.”
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment