OpenAI chairman Bret Taylor says AI boom feels like dotcom era: “We’re in the hype cycle’s peak”

OpenAI chairman and CEO of AI Sierra Bret Taylor feels that the present wave of artificial intelligence innovations replicates the frenzy of the dotcom boom — with all its promise, pressure, and potential pitfalls.

As reported by The Verge, speaking at the recent podcast episode, Taylor talked about the explosive growth of AI agents and the increase of investor interest, likening it to the early 2000s internet gold rush. “It feels like the dotcom boom,” he said, stressing on the fact that the excitement is justified but the industry is also grappling with inflated expectations and the huge number of startups chasing the same dream.Taylor’s company Sierra is also developing AI agents which are designed to automate business workflows starting from customer support to internal operations with the help of natural language interfaces. He also stressed on the fact that while the technology is powerful, most of the companies are still working to move beyond demos and focus on real-world deployment.

The bubble and the breakthroughs

Taylor also acknowledged the fact that the AI sector is a “hype cycle,” where valuations and media attention often outpace the actual product maturity.

He also emphasised that this phase is also important: “Every transformative technology goes through this. The dotcom boom gave us Amazon and Google. The AI boom will give us its own giants.”The OpenAI chairman also talked about the importance of responsible development, hinting at the challenges of scaling models like GPT and at the same time maintaining safety and reliability. He also pointed out on the need for real utility over flashy demos, urging founders to focus on solving meaningful problems.

Sierra’s Vision

Seirra believes in creating AI agents that act more like employees than chatbots — capable of handling tasks across platforms, learning from context, and integrating with enterprise tools. Taylor also added that the long-term success in AI will hinge on real-world utility, responsible deployment, and scalable infrastructure. He emphasised that the companies that are working to solve useful problems rather than chasing the buzzwords will emerge as leaders in the AI era.Taylor’s perspective aligns with the growing calls for ethical AI development, especially as governments and regulators grapple with how to manage the risks of misinformation, bias, and automation.