People got rich quick and a reset is coming
Benchmark general partner Bill Gurley on Monday said the artificial intelligence wave is real and a lot of people got rich quick, but he expects a “reset” to come.
“When people get rich quick, a whole bunch of people come in and want to get rich too, and that’s why we end up with bubbles,” Gurley told CNBC’s Money Movers.
Gurley referenced the work of Carolta Perez, an economic scholar who wrote “Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages,” and noted that “bubbles only exist when the actual wave is real.”
The venture capitalist said that when the reset happens, investors should have a price in mind for beat down software-as-a-service stocks, “and start gobbling them up.”
Benchmark was an early investor in Uber, and Gurley played a key role in the exit of then-CEO Travis Kalanick in 2017.
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