Jeff Bezos Dismisses AI Bubble Fears, Says ‘Good Ideas Will Pay for the Losers’; Backs Zero Taxes for Struggling Americans

Jeff Bezos has dismissed concerns surrounding a possible artificial intelligence bubble, saying that even if the current AI frenzy proves unsustainable, the long-term gains for society will far outweigh the risks. Speaking during an interview with CNBC’s Squawk Box, Bezos argued that heavy investment in AI is ultimately beneficial because it accelerates innovation and experimentation across industries.

“Even if it does turn out to be a bubble, you shouldn’t worry about it because the bubble is driving investment and a lot of the investment is going to turn out to be very healthy,” Bezos said in the interview. He added that the rapid enthusiasm around AI means that nearly every idea is getting funded, including some questionable ones, but stressed that successful innovations will compensate for failed experiments. Jeff Bezos Plans USD 100 Billion AI-Driven Manufacturing Fund To Transform Industrial Automation.

Bezos compared the current AI boom to the biotech bubble of the 1990s. While many investors lost money during that period, the wave of funding helped create breakthrough medical technologies and life-saving drugs. “A lot of investors lost money on certain things, but we still got to keep all the life-saving drugs that they had invented,” he said. NASA Selects Jeff Bezos-Run Space Technology Company Blue Origin To Deliver VIPER Rover to Moon’s South Pole.

The remarks come at a time when major tech companies are dramatically increasing spending on AI infrastructure. Hyperscalers including Amazon, Microsoft and Google are expected to collectively spend more than $700 billion on AI infrastructure this year. Meanwhile, Sam Altman has warned that investors may be “overexcited about AI,” even as OpenAI’s valuation reportedly crossed USD 850 billion.

Bezos also spoke about Project Prometheus, a startup he launched in November with USD 6.2 billion in funding. The venture, led alongside former Google X executive Vik Bajaj, focuses on building AI systems capable of handling physical and industrial tasks such as engineering, manufacturing and drug design. Bezos described the company’s mission as creating an “artificial general engineer,” calling it a next-generation evolution of CAD software.

Explaining why the venture was launched independently instead of under Amazon or Blue Origin, Bezos said, “It’s its own big idea, and Prometheus, you can get a lot of focus by having a separate company.”

During the same interview, Bezos also advocated eliminating federal income taxes for lower-income Americans. Referring to federal tax data, he said the top one percent currently contribute about 40 percent of all federal income tax revenue, while the bottom half contribute roughly three percent. “When people are starting out and they’re struggling, stop taxing them. We don’t need it. We live in the wealthiest country in the world,” Bezos said.

Using the example of a nurse in New York, Bezos added: “We shouldn’t be asking this nurse in Queens to send money to Washington. They should be sending her an apology. It really makes no sense.”

(The above story first appeared on LatestLY on May 24, 2026 12:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).