Former Baillie Gifford investment manager James Anderson expressed concerns about potential bubble-like conditions in the AI sector, pointing to Nvidia’s $100 billion investment in OpenAI as a particular worry.
Anderson, who described himself as a "huge admirer" of Nvidia, told the Financial Times that the chipmaker’s massive OpenAI investment gave him "more reason to be concerned there than before."
While Anderson noted there "wasn’t really much sign of a bubble" until the last couple of months, he cited OpenAI’s valuation surge to $500 billion in less than a year and Anthropic nearly tripling in value over the past six months as troubling developments.
"That scale of jump and the pace with which it happened did bother me," Anderson said in the interview.
Drawing parallels to the dot-com bubble, Anderson observed that current AI investment patterns are reminiscent of past 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 stated.
