Billionaire investor and GMO co-founder Jeremy Grantham has issued a stark warning to artificial intelligence (AI) enthusiasts. He pointed out the historical precedents, recalling how Amazon.com Inc. (NASDAQ:AMZN) stock plunged “92%” following the 2000 dot-com crash, warning that today’s high-flying AI giants like Nvidia Corp. (NASDAQ:NVDA) may be on track to face a similar “temporary collapse.”
The Danger Of Tech Euphoria
While acknowledging that artificial intelligence is a “dazzlingly important idea” that will fundamentally change human life, Grantham argued that the technology is repeating a historical pattern of speculative excess.
Major inventions, including railroads and the early internet, have always triggered immense psychological hype, leading to severely overvalued markets.
“We all want to put our money in it… and it sucks in more than you can shake a stick at and you get overinvestment,” Grantham told CNBC. “So everyone in the end in those situations loses their shirt.”
