'AI bubble': Bill Gates says not all AI companies will survive the hype
Bill Gates thinks the AI gold rush might be getting out of hand.
At Abu Dhabi Finance Week, he pointed out that some AI companies—like Palantir and Tesla—have sky-high valuations (P/E ratios over 200), much higher than the S&P 500 average.
His take? "A reasonable percentage of those companies won't be worth that much," hinting that a market correction could be coming.
Gates: Short-term risks, long-term hope
Gates explained, "AI is only a bubble in the sense that not all these valuations will end up going up. Some of them will go down."
But he's still excited about what AI can do for real-world problems, like improving healthcare and farming—even mentioning virtual doctors and farm advisors making a difference in Africa.
A quick look at Gates's legacy
After stepping down as Microsoft CEO in 2000, Gates has focused on philanthropy through his foundation.