Former Intel CEO Pat Gelsinger says AI is a bubble that won't pop for 'several years'

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Ex-Intel CEO Pat Gelsinger says we are in an AI bubble, but it won't burst for "several years."
Gelsinger told CNBC that businesses have yet to see material benefits from AI investments.
Other tech leaders, including Sam Altman, have also suggested we may be in an AI bubble.

Former Intel CEO Pat Gelsinger is the latest voice to say the AI bull run is a bubble — but he said it won't burst for "several years."

"Are we in an AI bubble? Of course. Of course we are," Gelsinger told CNBC's "Squawk Box" in a Monday interview. "I mean, we're hyped. We're accelerating. We're putting enormous leverage into the system."

However, Gelsinger said he doesn't see the bubble ending for "several years."

Some investors and analysts have become increasingly vocal about the AI market being overheated and have questioned whether massive infrastructure investments from tech companies will pay off, if company valuations are too high, and whether AI tools are providing value for businesses.

Gelsinger said that, while there has been an "industry shift to AI," businesses have "yet to really start materially benefiting from it."

Is AI fueling a stock market bubble? Business Insider debates it.

Gelsinger departed Intel in December 2024 after the US chipmaker struggled to keep up in the AI chip race.

Gelsinger, who is now a general partner at venture capital firm Playground Global, addressed his nearly four years as CEO of Intel, telling CNBC that the company "made a set of bad decisions over 15 years" and was "late on AI as well."

Other tech leaders who have suggested there is an AI bubble include OpenAI CEO Sam Altman, while Alibaba cofounder Joe Tsai said he was "beginning to see some kind of bubble."

Jensen Huang, the CEO of Nvidia — arguably the biggest winner of the AI boom — has dismissed comparisons between the dot-com bubble in 2000 and the AI market.