OpenAI’s Chief Operating Officer, Fidji Simo, has dismissed concerns that the ongoing AI investment frenzy is a bubble. She described the massive funding in artificial intelligence infrastructure as the “new normal,” driven by growing global demand for computing power.
In her first interview since assuming the role, Simo told AFP that OpenAI’s heavy spending on AI chips and data centers is necessary to meet rising demand. Under CEO Sam Altman, the company has made several high-profile deals in recent weeks, including partnerships to expand data capacity and AI chip supply.
Addressing questions about whether the AI investment frenzy could lead to financial instability, Simo said the surge in spending reflects the urgent need for computing resources, not speculation. “We are meeting that need for computing power so incredibly badly for many use cases,” she said. “From that perspective, I really do not see this as a bubble but as a new normal.”
Simo highlighted OpenAI’s commitment to using artificial intelligence responsibly. She pointed out that many users rely on ChatGPT for guidance in personal and emotional situations, such as mental health and parenting. To protect younger users, the company has introduced parental controls and is working on age-based safeguards.
She also discussed the impact of AI on employment, noting that while some jobs will be replaced, new ones like prompt engineering are emerging. “AI is going to create a lot of opportunities,” she said, adding that OpenAI aims to support the transition.
Looking ahead, Simo said the next step for AI will be creating models that understand user goals and act proactively to achieve them. She envisions tools that can plan activities or manage tasks automatically.
While acknowledging global competition, Simo emphasized the importance of maintaining a democratic approach to AI development. She said continued collaboration among democratic nations is key to staying ahead as countries like China expand their AI investments.
Overall, the AI investment frenzy reflects a shift toward viewing computing power as one of the most strategic resources in the modern economy.
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