"AI Is in a Bubble," Warns Sam Altman 🚨

Welcome to another edition of Horizon AI,

Economists have been speculating for a while whether the stock market is in an AI bubble that might burst soon. Now, OpenAI CEO Sam Altman has admitted he believes we are indeed in one.

Let’s take a closer look!

Read Time: 4.5 min

Here's what's new today in the Horizon AI

• Sam Altman: The AI Bubble Is Real

• Claude AI Gets 'Hang Up' Button for Abusive Users

• AI Tutorial: Turn your 2D images into 3D models for free

• AI Tools to check out

• AI Findings/Resources

• The Latest in AI and Tech 💡

AI News

OPENAI

Sam Altman: The AI Bubble Is Real

OpenAI CEO Sam Altman has joins the voices warning that AI is in a bubble, saying that the market’s obsession with AI feels a lot like the dot-com craze of the ’90s, where excitement was sky-high, money was flowing fast, and not all bets were going to pay off.

Details:

• “When bubbles happen, smart people get overexcited about a kernel of truth,” Altman said. “If you look at most of the bubbles in history, like the tech bubble, there was a real thing—but people got overexcited.”

• Altman thinks it is “insane” how some AI startups with just “three people and an idea” are receiving funding at such high valuations, predicting that many are “going to lose a phenomenal amount of money.”

• Despite this, he said he expects OpenAI to “spend trillions of dollars on data center construction in the not very distant future,” suggesting confidence that OpenAI will survive the burst.

His comments add to growing concern among experts and analysts that investment in AI is moving too fast. This includes Apollo Global Management chief economist Torsten Slok, who stated in a report that today’s AI bubble is, in fact, bigger than the internet bubble.

Source

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ANTHROPIC

Claude AI Gets 'Hang Up' Button for Abusive Users

The latest versions of Claude, Opus 4 and 4.1, can now cut off conversations as a “last resort” if users keep pushing for harmful or abusive content.

Details:

• These cut-offs are rare and won’t affect most users, even when discussing highly controversial topics, as they are only meant to activate in extreme cases, such as users requesting the generation of inappropriate content involving minors or information that could contribute to large-scale violence or terrorism.

• The feature is also meant to help the AI’s “welfare,” as the company claims these kinds of conversations make Claude show “apparent distress.”

• If a chat is cut off, users can’t send more messages in that specific conversation, but they can start new ones and will still be able to edit and retry previous messages to create new branches of ended conversations, helping to avoid “potential loss of important long-running conversations.”

This new feature is still experimental, and Anthropic promises it will keep improving, encouraging users to submit feedback by reacting to Claude’s message with a thumbs-up or thumbs-down, or by using the dedicated “Give Feedback” button if they notice it’s not working correctly.

Source

AI Tutorial

Turn your 2D images into 3D models for free

Here’s how you can quickly create 3D models for use in games, animation, art projects, and VR/AR productions with Microsoft’s new Copilot 3D tool.

1. Go to the Copilot 3D website and sign in with your Microsoft account.

2. Click the Upload Image button (it can be a drawing or another type of artwork, or just a photo). Choose your image and then click Create.

Copilot 3D supports PNG and JPG files under 10MB. Microsoft also recommends choosing an image with a single subject, even lighting, and a plain background.

If the source image doesn’t work, you’ll be told that the content cannot be generated. In that case, try a different image.

3. Once the 3D model is generated, you can rotate it with your mouse to view it from different angles.

4. If you’re satisfied with the result, you can download the 3D model in GLB format, which is compatible with most 3D viewers, design tools, and game engines. Otherwise, you can try the Recreate button.

5. Your generated models will be saved to your My Creations page.

*Note: The tool works on all major mobile browsers, but Microsoft recommends using it on a desktop PC.

AI Tools to check out

🔍 Profound: Optimize your brand's visibility in AI search.

🍁 Autumn: Stripe made easy for AI startups.

💜 Open Lovable: Open-source AI web app builder that can transform any website URL into a working, editable clone.

🎮 Spielwerk: Create Mini Games by simply describing them with words.

❄️ Snowglobe: Test LLM apps at scale. Simulate real-world conversations, uncover risks, and improve model performance before launch.

AI Findings/Resources

💡 How to code with AI on a budget/free

🤔 Midjourney isn’t the most accurate AI—That’s why it’s the best

👉 Andrew Ng shares a masterclass on how to build startups 10x faster with AI in under 45 minutes

👀 The era of AI hacking has arrived

The latest in AI and Tech

Meta’s new ‘Hypernova’ AR glasses might be more affordable than expected

The next-gen smart glasses from Meta might cost $800 instead of starting at over $1,000, according to Bloomberg. The change in pricing comes from the company being open to accepting lower margins to boost early demand.

Character AI users spend an average of 80 minutes a day chatting with AI-generated characters.

The numbers are close to those from TikTok and YouTube. Critics warn of emotional dependency risks, especially since the platform has 20 million monthly active users, mostly Gen Z and younger, with half being women.

GPT 5 completed Pokémon Red in just 6470 steps

OpenAI’s latest model seems to be the new Pokémon champion, eclipsing the previous record of 18,184 steps by ChatGPT-o3 in seven days of gameplay, compared to over 15 days for o3. It also beats the records of rival AI models like Claude and Gemini.

GSA introduces USAi to streamline AI adoption across government

Trump's U.S. General Services Administration (GSA) has launched USAi, a tool the agency describes as a "secure generative artificial intelligence evaluation suite that enables federal agencies to experiment with and adopt artificial intelligence at scale—faster, safer, and at no cost to them."

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Gina 👩🏻‍💻