Amazon founder Jeff Bezos says he can’t tell whether artificial intelligence is in a bubble, but he knows what he would tell someone living off their savings, Benzinga reports. As excitement around artificial intelligence continues to fuel massive investments and soaring valuations across the technology sector, Jeff Bezos says retirees should resist the temptation to bet on individual AI stocks and instead follow a strategy long championed by Warren Buffett: buy the broader market. Speaking in an interview with Fox News host Bret Baier recently, the Amazon founder was asked whether the AI industry is currently experiencing a bubble. Bezos said it was difficult to know with certainty but stressed that the underlying technology is undeniably real. “It’s hard to know,” Bezos said when asked about a potential AI bubble. “What I do know is the technology is real.”
Jeff Bezos believes good ideas and bad ideas get funded together
Bezos said the problem in periods like this is that every experiment gets funded, the good ideas along with the bad. In the middle of the frenzy, he said, it is hard for investors to tell them apart. Speculators can lose money when enthusiasm runs ahead of results, he argued, but the inventions themselves don’t disappear. In his view, that makes the situation tricky for investors and good for society.“Every experiment gets funded, the good ideas and the bad ideas,” Bezos said, adding that it can be difficult for investors to distinguish between winners and losers while the boom is unfolding.
Trillions being spent on AI infrastructure
The comments from Bezos come as investment in AI infrastructure is growing continuously. As per the report, basket of 41 AI-linked companies tracked by JPMorgan Chase accounts for roughly 49% of the market value of the S&P 500, highlighting the growing concentration of investor interest in the sector. Major tech companies like Google, Apple, Nvidia, Microsoft and Amazon have become the biggest gainers of the AI boom. The report further adds that the world’s largest hyperscale technology companies are said to spend around $800 billion on AI infrastructure in 2026, even though the long-term revenue impact from AI investments remains difficult to quantify.
Jeff Bezos echoes Warren Buffett’s long-standing advice
When Baier shifted the discussion to a practical question and asked whether he would recommend retirees own AI stocks today, Bezos offered a straightforward answer. “I would usually tell a retiree to buy the S&P 500,” he said. The advice given by Bezos mirrors the recommendations made by Warren Buffett, chairman emeritus of Berkshire Hathaway, who has repeatedly advocated low-cost investments tied to the S&P 500 as a simple way for long-term investors to build wealth without attempting to pick individual winners. The index already includes major AI beneficiaries such as Microsoft, Nvidia, Alphabet, Amazon and Apple, allowing investors to gain exposure to the sector while maintaining diversification.
