Openai founder Sam Altman warned about AI bubbles that could have deep meaning in cryptography. Many major AI tokens are overrated and draw market presence from the general hype.
Despite the ambitious goals of decentralized AI developers, large LLM builders and VC funds are piloting this market. The highest level of issues can cause a troublesome fallout for the crypto sector.
How cryptography and AI influence each other
Sam Altman, founder of Openai and Worldcoin, is a key figure for both AI and Crypto. However, despite the lofty promises he made about his company’s software capabilities, the cracks are shaped in an optimistic picture. In a recent interview, Altman claimed that AI is on the bubble.
“When bubbles happen, smart people get overly excited about the core of the truth. When you see most bubbles in history (dot com crash), there was the real thing. Technology was really important.
So, what is the evidence for this? What further impact will Crypto’s own AI sector? Unfortunately, concern is quite important.
The market has confirmed that AI infrastructure building is highly undervalued. But how was this bullish signal reflected in the cryptography? Most of the largest AI tokens have recently shown poor or unstable performance.
A closer look at the biggest AI tokens adds more context. Bitenser is a building blockchain infrastructure and the market for machine learning tools, but not LLM. Nearby, which showed encouraging signs this month, is on a similar boat, with other big tokens being a complete gimmick.
Mainly, this crypto sector tracks the largest AI companies. It’s not the market mover itself. When macroeconomic factors affect the biggest LLM developers, the AI token market also drops. Is this relationship the opposite?
Regarding data from LLM Builder
For this reason, everyone at Crypto should be worried about Altman’s comments and other warning signs.
Essentially, expert analysts fear there will be a bubble as VC companies are the only ones that keep operating this technology. Behind the scenes, it is not clear whether the technology is extremely expensive and affordable for consumers. Without a truly practical case, these platforms cannot support themselves.
One data point is particularly useful. AI researcher Ed Zitron recently published a document detailing some of the changes between CHATGPT-5 and 4O. To shorten the long story, its new “router” system could burn twice as many tokens per query on chatgpt-4o.
Based on the warm response of the community, the new features of the software are probably not worth this high cost. If these issues begin to reverberate among the biggest AI companies, the corresponding crypto market is particularly vulnerable.
That is, investors should be very cautious at this point. The industry is well known for its volatility. Many assets, companies and software models are burning out in epic crashes. The AI bubble may do the same for this whole cryptographic subsector.
Sam Altman’s post says AI is in the bubble. What is the cryptographic “AI” token next to the pop? It first appeared in Beincrypto.
