OpenAI’s COO Fidji Simo defends massive AI investments, calling them the "new normal" in the face of soaring demand for computing power, challenging bubble fears.
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| OpenAI’s Fidji Simo asserts that AI investments are reshaping the tech landscape and aren’t part of a speculative bubble. She describes it as a "new normal." File photo: CH |
San Francisco, USA — October 7, 2025:
As the global tech sector continues to invest heavily in artificial intelligence (AI), a growing debate has emerged: Are these investments part of a speculative bubble, or is this simply the “new normal”? Fidji Simo, the Chief Operating Officer of OpenAI, offered a firm stance on the matter during her first interview since taking office on August 18, 2025.
In a conversation with a French media recently, Simo argued that the vast capital being funneled into AI infrastructure—especially computing power—is not an overinflated trend but a necessary and strategic shift. She pointed to the increasing global demand for computing resources, particularly for applications like OpenAI’s flagship model, ChatGPT, as evidence that the tech world is responding to a critical need.
Simo explained, “What I am seeing is a massive investment in computing power... We're meeting this need for computing power that is incredibly high for so many use cases that people want.” With AI applications continuing to scale, from natural language processing to autonomous systems, the demand for computational resources is only expected to increase, she noted.
Despite concerns from skeptics who question the sustainability of the AI boom, Simo asserted that what we are witnessing is not a temporary surge driven by speculation, but rather an enduring shift in how industries approach technological infrastructure. “I really do not see that as a bubble. I see it as a new normal. And I think the world is going to realize that computing power is the most strategic resource,” she added, echoing a sentiment that many in the tech industry are beginning to embrace.
This assertion has profound implications. If the investments fueling AI’s growth are not a fleeting trend, it suggests a long-term evolution in the way the global economy engages with technology. From cloud computing giants to startups innovating in machine learning, the race for computational power has become central to the tech industry's future.
Critics of AI’s rapid expansion, however, may point to the growing risks of overinvestment, particularly when it comes to new and unproven technologies. While AI has vast potential, the infrastructure needed to support it—supercomputers, data centers, and specialized hardware—represents a significant financial commitment. Some fear that, in the rush to capitalize on AI, companies might face a "tech bubble" akin to the dot-com crash of the early 2000s.
Yet, Simo’s stance challenges this narrative, advocating for a view of AI investments as a necessary progression to meet evolving market demands. The growing emphasis on AI capabilities across industries, from healthcare to finance and transportation, reflects a broader shift in global priorities, one that positions computing power as not just a resource, but a critical strategic asset for the 21st century.
As the AI market continues to expand, questions surrounding sustainability, profitability, and future risks will undoubtedly persist. However, with leaders like Simo framing AI investments as foundational to the future of technology, the question may no longer be whether the investments are a bubble, but rather how quickly the world will adapt to this new technological "normal."