Bill Gates Says Some Highly Valued AI Companies May Lose In the Long Run – Warns Many Firms ‘Won’t Be Worth That Much’

Speaking to CNBC at the Abu Dhabi Finance Week, Bill Gates highlighted the intense competition shaping the AI industry.
Bill Gates speaks onstage for a special conversation during "What’s Next? The Future With Bill Gates"at The Paris Theater on September 26, 2024 in New York City.
Bill Gates speaks onstage for a special conversation during "What’s Next? The Future With Bill Gates"at The Paris Theater on September 26, 2024 in New York City. (Photo by Roy Rochlin/Getty Images for Netflix)
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Shivani Kumaresan·Stocktwits
Updated Dec 09, 2025   |   9:50 AM EST
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  • Bill Gates warned that although AI is a deeply profound technology, investors need to be cautious.

Bill Gates, cofounder of Microsoft Corp. (MSFT), has reportedly cautioned investors about high valuations in the artificial intelligence sector, saying not all companies will emerge as winners.

Speaking to CNBC at the Abu Dhabi Finance Week, Gates highlighted the intense competition shaping the AI industry.

Valuations And Market Concerns

According to the report, Gates said while AI is "a deeply profound technology that will reshape the world," investors should remain careful. He noted that many AI-related stocks have P/E (price-to-earnings) ratios well above traditional benchmarks. 

Gates warned that "a reasonable percentage of those companies won’t be worth that much," reflecting broader investor anxiety about potential overvaluation.

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