James Anderson, a former investment manager at Baillie Gifford, has voiced concerns over potential bubble-like dynamics in the AI industry, highlighting Nvidia’s (NASDAQ:NVDA) $100 billion commitment to OpenAI as a key point of worry.
Anderson, who calls himself a “huge admirer” of Nvidia, told the Financial Times that the company’s significant OpenAI investment gave him “more reason to be concerned there than before.”
Although he noted that “there wasn’t really much sign of a bubble” until recent months, Anderson pointed to OpenAI’s meteoric rise to a $500 billion valuation in under a year and Anthropic nearly tripling in value over the past six months as developments that cause concern.
“That scale of jump and the pace with which it happened did bother me,” he said.
Comparing the current situation to the dot-com era, Anderson remarked that today’s AI investment trends echo some patterns of previous market excesses.
“It’s not quite like what many of the telecom suppliers were up to in 1999-2000 but it has certain rhymes to it,” he added.
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