Sam Altman Warns of AI Bubble; Crypto AI Tokens Face Uncertain Future

Artificial intelligence (AI) has become the hottest topic in global tech. Billions-worth of capital is flowing into startups, and governments are scrambling to regulate the field. Investors, meanwhile, see AI as the next great frontier

However, according to Sam Altman – one of the most influential figures in the AI and crypto sectors – believes that the hype has gone too far leading to overvaluing of AI tokens. In a recent interview, the founder of OpenAI and Worldcoin (now World) warned of the impending risks in case the AI bubble ‘bursts’

Altman Sounds the AI Bubble Alarm

In a recent interview with The Verge and other reporters*,* Sam Altman discussed his views regarding the criticism of GPT-5’s rollout and the AI bubble, among other topics. The OpenAI CEO agreed that we are currently in an AI bubble

“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.” Altman said during a lengthy interview

Sam Altman says ‘yes,’ AI is in a bubble

— The Verge (@verge) August 15, 2025

He further drew the comparisons between the current AI bubble and the dot-com bubble in the early 2000s. Altman claimed that people might be overexcited in a similar manner – potentially leading to a similar crash – citing the dot-com tech too was a ‘real thing.’

“When bubbles happen, smart people get overexcited about a kernel of truth. If you look at most of the bubbles in history, like the [Dotcom crash], there was a real thing. The tech was really important, [but] people got overexcited,” Altman argued.

Back then, internet companies with little revenue attracted enormous valuations before collapsing almost overnight. Altman’s statements suggest that a similar pattern may be emerging today. While AI is an important technology, investors are pricing in a future that may not arrive as quickly as they hope.

This perspective carries weight. OpenAI is at the center of the boom, and Altman also has direct ties to crypto through his project Worldcoin (WLD). If his assessment proves accurate, the fallout may stretch well beyond Silicon Valley.

AI Tokens Ride the Hype but Struggle for Identity

Crypto markets have tried to cash in on the AI frenzy. Several projects brand themselves as blockchain-based AI solutions. However, the success of these AI tokens has been rather mixed

Bittensor, for instance, brands itself as a leading blockchain infrastructure provider for machine learning. However, the project remains far behind competing with leading language models. This has left the project’s native token – TAO – struggling to remain afloat

According to data by Coingecko, Bittensor (TAO) is currently priced at $370, down by 2.7% over the last 24 hours. The coin is also down by 3.8% over the last 7 days and 13.2% over the last one month

Bittensor (TAO) Price | Source: CoingeckoAnother AI token – NEAR Protocol – is fairing far much better compared to Bittensor. However, while the project has made some progress, its AI branding is more marketing than product delivery

On a price perspective, NEAR is down by 2.9% over the last 24 hours, 2.7% over the last 7 days and 1.3% over the last month. But nonetheless, these prices show that the AI tokens are struggling

AI Tokens Face the Cost Problem

For AI projects, sustainability remains a major point of concern. Training and running large models is extremely expensive. Analysts note that many firms rely heavily on venture capital funding rather than consumer demand

Researcher Ed Zitron, for example, recently highlighted changes in OpenAI’s new system. According to his analysis, the updated “router” architecture could double the computing cost of each query compared to ChatGPT-4o. Yet early users say the improvements do not justify the expense.

Such cost issues matter for crypto investors. If leading AI companies struggle to control expenses, enthusiasm for smaller blockchain-based projects will almost certainly cool. Tokens tied to AI hype could be among the first to sink.

What This Means for Investors?

The crypto industry has seen countless bubbles, from initial coin offerings (ICOSs) to NFT manias. AI tokens now risk falling in a similar cycle. While Altman’s warning does not guarantee an imminent crash, it should caution anyone speculating in this subsector.

Investors need to ask whether AI tokens represent real innovation or just another bubble within crypto. The track record so far leans toward the latter. Until projects show practical value beyond hype, their link to mainstream AI makes them vulnerable to shocks in both industries.

In short, if the AI bubble bursts, crypto’s AI sector could be the first casualty. For now, caution looks like the wisest strategy