https://www.cnbc.com/2026/01/22/openai-chair-bret-taylor-ai-bubble-correction.html

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Tech

OpenAI chair Bret Taylor says AI is 'probably' a bubble, expects
correction in coming years

Published Thu, Jan 22 20269:00 AM ESTUpdated 3 Hours Ago
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Ashley Capoot@/in/ashley-capoot/
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Key Points

  * Bret Taylor said AI is "probably" a bubble, and he expects to see
    a correction over the next few years.
  * Taylor, who serves as the chairman of OpenAI's board and
    co-founded the artificial intelligence startup Sierra, said he is
    an AI optimist.
  * He said the free market will ultimately determine where the value
    is and which AI players have the best products.

Sierra CEO Bret Taylor on the future of AI: We're at the beginning of
the curve
watch now
VIDEO8:1108:11
Sierra CEO Bret Taylor on the future of AI: We're at the beginning of
the curve
Squawk Box

Bret Taylor, co-founder of the artificial intelligence startup
Sierra, said Thursday that AI "probably" is a bubble that is causing
both "smart money" and "dumb money" to fund competitors at every
layer of the tech stack.

Taylor, who also serves as the chairman of OpenAI's board, said the
free market will ultimately determine where the value is and which AI
players have the best products. He described himself as an AI
optimist.

"When everyone knows that AI is going to have a huge impact on the
economy across a huge range of industries and workflows, money is
plentiful," Taylor told CNBC at the World Economic Forum in Davos,
Switzerland.

"I think over the next few years, you'll see a correction, you also
see consolidation, but I don't think you can get innovation without
that kind of messy competition," he added.

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Taylor co-founded Sierra in 2023, and the company builds
and implements AI agents for customer service. Sierra raised $350
million in fresh capital in September, boosting its valuation to $10
billion.

Before launching Sierra, Taylor was co-CEO of Salesforce alongside
Marc Benioff. He has also acted as the board chairman of Twitter,
which is now X, the chief technology officer at Facebook, which is
now Meta, and co-created Google Maps.

He said AI is going to have a "huge impact" across commerce, search
and payments, but it takes time for companies to adopt, the
regulatory environment to evolve and infrastructure to get built out.

"I think we're at the beginning of this curve," Taylor said.

WATCH: Bill Gates on Gates Foundation-OpenAI partnership, impact of
AI on jobs

Bill Gates on Gates Foundation-OpenAI partnership, impact of AI on
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Bill Gates on Gates Foundation-OpenAI partnership, impact of AI on
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