Jonathan Ross, the chief executive officer and founder of the AI chip company Groq, offered a thought-provoking perspective on Monday by suggesting that the existence of an artificial intelligence, or AI, bubble should not necessarily be interpreted as a negative phenomenon. Speaking in an interview with CNBC’s Dan Murphy during the Future Investment Initiative summit in Saudi Arabia, Ross was asked whether the recent surge of interest, investment, and speculation surrounding AI technologies indicated the formation of a market bubble. His response emphasized complexity and subtlety, arguing that enthusiasm and even a certain level of speculative excess often accompany vigorous technological revolutions.
Ross elaborated that bubbles, while often viewed as precursors to financial instability, can also serve as indicators of intense economic activity. They attract innovators, entrepreneurs, and investors who bring both capital and creative energy into emerging sectors. In his view, this influx of participants accelerates experimentation and drives progress, producing conditions where important advancements are made despite the speculative noise. “You actually want to see a bubble,” he explained, “because it reflects the presence of extraordinary levels of engagement and optimism, signaling that people recognize transformative potential and are eager to be involved.”
However, Ross underscored that the essential issue is not whether an AI bubble exists but whether investors and companies are allocating resources wisely within this expanding ecosystem. He told Murphy that distinguishing between meaningful innovation and overvaluation is what ultimately determines long-term success. When investments focus on genuine breakthroughs—technologies that fundamentally enhance the capabilities of AI systems or expand their usefulness—then, according to Ross, the capital cannot be deployed fast enough. Such projects, he suggested, will almost inevitably generate substantial returns. At the same time, he acknowledged that many participants will back less sound ventures that fail to yield profit, as happens in every rapidly developing industry.
Pushing his argument further, Ross posed a rhetorical question: will the extraordinary sums currently flowing into AI ultimately produce returns greater than the initial outlay? He expressed confidence that they would, provided investors understand where to direct their funds. “The real challenge,” he explained, “is not the presence of a boom, but the ability to recognize where sustainable value lies within it.” Representatives from Groq declined to provide additional comment to Business Insider following Ross’s remarks.
Before establishing Groq in 2016, Ross had an extensive engineering career at Google, where he contributed to the creation of the tech giant’s Tensor Processing Units, or TPUs—specialized chips specifically optimized for machine learning workloads. These devices were designed to serve as alternatives to conventional graphics processing units, or GPUs, from Nvidia, which had previously dominated the AI hardware space.
Other notable figures in the financial and technology sectors have also weighed in on the notion of an AI bubble. JPMorgan CEO Jamie Dimon, speaking at the Fortune Most Powerful Women Summit on October 14, advised against labeling the entire AI sector as a bubble. While he conceded that certain ventures might exhibit speculative characteristics, he maintained that, collectively, the investments being channeled into this field would likely yield long-term economic and societal payoffs. Dimon emphasized a nuanced, case-by-case evaluation, asking whether each initiative contributes authentic, productive value that can justify its cost over time.
Former Meta executive Nick Clegg echoed some of these sentiments while warning that the AI sector currently exhibits many of the hallmark patterns of a speculative surge. He remarked that the frenetic pace of deal-making—occurring almost hourly in venture circles—resembled historical bubbles that preceded market corrections. Clegg, who served as the United Kingdom’s deputy prime minister between 2010 and 2015 before joining Meta in 2018 and eventually becoming its president for global affairs in 2022, suggested that investors remain cautious and prepared for volatility. In a CNBC interview that aired on October 15, he described the environment as a “spasm” of activity, underscoring both the immense excitement surrounding AI and the risk that overconfidence might soon lead to a necessary rebalancing.
Taken together, these perspectives portray a complex landscape in which optimism and prudence must coexist. Ross’s argument that an AI bubble may serve as a catalyst for economic dynamism complements Dimon’s measured confidence in AI’s long-term payoff and Clegg’s cautionary tone regarding speculative excess. Combined, they reveal an industry at the crossroads of innovation and market psychology—one where extraordinary technological advances are emerging amid equally extraordinary uncertainty.
Sourse: https://www.businessinsider.com/groq-ceo-ai-bubble-not-bad-thing-savvy-investment-2025-10
