Sam Altman, CEO of OpenAI, and Lisa Su, CEO of Advanced Micro Devices, testify during the Senate Commerce, Science and Transportation Committee hearing titled “Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation,” in Hart building on Thursday, May 8, 2025. <\/p>\n
Tom Williams | CQ-Roll Call, Inc. | Getty Images<\/p>\n
There’s a bubble forming in the artificial intelligence industry, according to OpenAI CEO Sam Altman.<\/p>\n
“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,” Altman said, according to a report by The Verge<\/a>.<\/p>\n Altman’s AI company is currently in talks to sell about $6 billion in stock that would value OpenAI at around $500 billion, CNBC confirmed Friday<\/a>.<\/p>\n In another context, Altman warned that the U.S. may be underestimating the progress that China is making in AI.<\/p>\n Given the above premises, should investors be more cautious about OpenAI? Altman was not posed this question, but one wonders whether his opinion would also be “yes.”<\/p>\n Outside pure-play AI companies, the money is, likewise, still flowing. Intel is receiving a $2 billion injection of cash from Japan’s SoftBank. <\/p>\n It’s a much-needed boost to the beleaguered U.S. chipmaker. Intel has fallen behind foreign rivals such as TSMC and Samsung in manufacturing semiconductors that serve as the brains for AI models.<\/p>\n But going by Altman’s views, the investment in Intel might not be a good bet by SoftBank CEO Masayoshi Son.<\/p>\n Not everyone agrees with Altman, of course. Ray Wang, research director for semiconductors, supply chain and emerging technology at Futurum Group, pointed out that the AI industry is not heterogeneous.<\/a> There are market leaders, and then there are companies that are still developing. <\/p>\n In the real world, bubbles delight because they reflect their surroundings in a play of light. But the bubble Altman described <\/strong>could be one doesn’t show the face of its observer.<\/p>\n \u2014 CNBC’s Dylan Butts contributed to this report<\/p>\n What you need to know today<\/p>\n Trump suggests territory ‘exchanges’ between Ukraine and Russia. <\/strong>At a White House meeting between the U.S. president, Ukrainian President Volodymyr Zelenskyy<\/a> and European leaders, Trump raised that possibility as part of the peace process<\/a>.<\/p>\n Intel is getting a $2 billion investment from SoftBank. <\/strong>Both companies announced the development Monday, in which SoftBank<\/a> will pay $23 per share<\/a> for Intel’s common stock. Shares of Intel<\/a> jumped more than 5% in extended trading.<\/p>\n The artificial intelligence market is in a bubble, says Sam Altman. <\/strong>Separately, the OpenAI CEO said he’s “worried about China,” and that the U.S. may be underestimating the latter’s progress<\/a> in artificial intelligence.<\/p>\n U.S. stocks close mostly flat on Monday. <\/strong>The three major indexes made moves that were less than 0.1 percentage points<\/a> in either direction as investors await key U.S. retail earnings. <\/strong>The Stoxx Europe 600<\/a> ticked up 0.08%<\/a>.<\/p>\n [PRO] Opportunities in one area of the European market. <\/strong>Investors have been pivoting away from the U.S. as multiple European indexes outperform those on Wall Street. But one pocket of Europe still remains overlooked<\/a>, according to analysts.<\/p>\n