AsianFin -- OpenAI CEO Sam Altman has warned that the artificial intelligence sector may be experiencing a bubble, according to a report by The Verge on Friday.

“Bubbles happen when smart people get overexcited about a kernel of truth,” Altman told a small group of reporters last week.

He added, “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 drew parallels between today’s AI frenzy and the dot-com bubble of the late 1990s, when investor enthusiasm for internet-based companies sent stock prices soaring before a sharp crash. Between March 2000 and October 2002, the Nasdaq lost nearly 80% of its value after many tech firms failed to deliver sustainable revenue or profits.

His remarks echo concerns from other prominent figures in finance and technology, who have cautioned that AI investment may be accelerating too rapidly. Alibaba co-founder Joe Tsai, Bridgewater Associates founder Ray Dalio, and Apollo Global Management chief economist Torsten Slok have all issued similar warnings about the risks of overexuberance in the AI market.