AI is ‘probably’ a bubble, there will be a correction

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.

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.

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