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OpenAI’s Fidji Simo: AI Investment Boom Is the ‘New Normal,’ Not a Bubble

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samour ankit
October 07, 2025

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The ongoing wave of massive investment in artificial intelligence infrastructure isn’t a temporary bubble, but rather the “new normal” for a technology that’s rapidly becoming central to modern life, says Fidji Simo, OpenAI’s Chief Operating Officer and one of the most influential figures in today’s AI industry.

In her first interview since assuming responsibility for OpenAI’s consumer applications — including its flagship model ChatGPT — Simo explained that the current explosion of capital flowing into AI is a natural response to surging global demand for computing power.

“What I am seeing is a massive investment in compute,” she told AFP. “There’s so much demand that we can’t meet it fast enough. From that perspective, I don’t see this as a bubble — it’s the new normal. The world is realizing that computing power is now the most strategic resource.”

A Surge Fueled by Demand, Not Speculation

Over the past months, OpenAI — led by CEO Sam Altman — has made a series of large-scale investments in data centers, AI chips, and computing infrastructure. While critics have questioned whether such spending is sustainable, Simo argues that these investments are crucial for meeting the skyrocketing user demand for AI tools.

Products like Sora, OpenAI’s video generation model, have experienced demand far beyond what the company’s infrastructure can currently serve. According to Simo, this kind of bottleneck highlights not an impending crash, but a future where computing capacity itself becomes the most valuable global commodity — much like energy or oil in past eras.

Balancing AI’s Promise and Perils

Simo, who was born in France and previously held senior roles at Meta (Facebook), acknowledges that AI’s rapid rise also brings serious challenges — especially around mental health, safety, and job displacement.

“I see my job as making sure the good side of this technology happens while we mitigate the bad side,” she said. “Many people turn to ChatGPT during tough moments when they have no one else to talk to. Some can’t afford therapy, yet find emotional support through these conversations.”

Recognizing such sensitive use cases, OpenAI has already launched parental controls and is developing age prediction systems to ensure age-appropriate interactions. If the system detects a teenage user, it provides a less permissive model than it would for adults, helping create safer digital experiences.

Jobs, Skills, and the Changing Workforce

Simo also addressed the impact of AI on employment — one of the most debated topics in the tech world. She believes AI will create as many new roles as it displaces.

“AI is going to create a lot of jobs, like prompt engineering, that didn’t exist before,” she explained. “At the same time, there will be professions that are directly impacted, and we see our role as helping with that transition.”

This dual focus — innovation paired with responsibility — reflects OpenAI’s broader mission to balance technological progress with social stability.

The Path Toward Truly Intelligent AI

When asked about the next frontier in AI development, Simo described a vision of assistants that can proactively understand and achieve user goals rather than simply respond to commands.

“Imagine telling the model you want to spend more time with your wife,” she said. “It could suggest weekend getaways, plan the itinerary, make reservations, and present it all for your approval. That’s where we’re heading — from reactive assistants to proactive companions.”

Although still in early stages, this kind of goal-oriented intelligence could redefine how humans interact with machines, making AI less of a tool and more of a trusted digital partner.

Global AI Race: Innovation, Regulation, and Competition

Commenting on global AI dynamics, Simo reflected on a popular saying in Silicon Valley: “America innovates, China copies, Europe regulates.” As a European, she admitted that this phrase “breaks her heart,” acknowledging Europe’s tendency to overemphasize regulation at the expense of innovation.

She also warned that China’s aggressive AI push continues to pose competitive challenges for democratic nations.

“We see China investing heavily to stay competitive — in innovation and in computing. That’s why it’s so important for democratic countries to keep investing, to ensure AI reflects democratic values.”

Her comments underline growing global tensions over who will lead the AI revolution — and how values like transparency, privacy, and freedom of expression will shape the future of the technology.

Parenting in the Age of ChatGPT

Despite strict usage policies that restrict ChatGPT for children under 13, Simo revealed that she allows her own 10-year-old daughter to use the tool — under supervision.

“It’s magical to see what she’s able to create,” she said. “Just this weekend, she was designing a new business idea, making banners and taglines using ChatGPT. In our childhood, we couldn’t turn imagination into reality that fast. I see it giving her superpowers.”

Her perspective highlights how generative AI can empower young users to think creatively and explore entrepreneurship — when guided responsibly.

AI as a Transformative Force

Simo’s remarks capture the essence of a pivotal moment for the AI industry. The massive flow of investment, while risky, signals a structural shift toward a world powered by intelligent systems and vast computational networks.

AI, once viewed as an experimental technology, is now a core infrastructure — underpinning business operations, education, creativity, and even emotional support.

Yet, as Simo repeatedly emphasizes, this transformation must unfold responsibly. Building safeguards for children, preparing workers for an AI-driven economy, and maintaining democratic values are not just ethical imperatives — they’re essential for the technology’s sustainable future.

Conclusion

Fidji Simo’s message is clear: AI is not a passing trend — it’s a permanent evolution. The billions pouring into data centers and chip manufacturing aren’t speculative bubbles but foundational investments in a new era of computing.

As OpenAI continues to push boundaries under Sam Altman’s leadership, Simo’s pragmatic optimism provides a grounded vision for AI’s role in society — one where innovation, safety, and human potential move forward together.