Bill Gurley on AI bubble: A bunch of people got rich quick and a reset is coming
Summary
Bill Gurley says the AI wave is real but expects a reset after many participants got rich quickly and speculative behavior created bubble dynamics. He cites Carlota Perez to argue that bubbles form around genuine technological revolutions and advises investors to set target prices and buy beaten-down SaaS stocks during the reset. Major software stocks and the IGV ETF have fallen roughly 20–25% in 2026, and big tech firms plan about $700 billion in AI-related spending this year. Gurley expresses concern about the extreme cash burn at leading model companies like Anthropic and OpenAI and contrasts that with his Benchmark experience investing in Uber.
Classifications
industries
Fintech & Banking
applications
Accounting and Taxes
AskAI Classifications
Labels
IT Services
Cloud Computing
Enterprise Software
Linked Companies
ServiceNow, Inc.
$1B+
Salesforce
$1B+
Amazon
$1B+
Google LLC
$100M to $250M
Microsoft
$1B+
OpenAI
$25M to $50M
Anthropic
$10M to $25M