James Anderson says he had not seen signs of an investment bubble in AI until recently. James Anderson says he had not seen signs of an investment bubble in AI until recently. Leading UK tech investor warns of'disconcerting' signs of AI stock bubble Wed 1 Oct 2025 07.07 EDTFirst published on Wed 1 Oct 2025 06.22 EDT A leading British tech investor has described soaring valuations of artificial intelligence companies as "disconcerting", amid concerns of an AI stock market bubble. James Anderson was an early backer of Tesla, Amazon and China's Tencent and Alibaba, generating vast returns for Baillie Gifford's flagship fund. Now at the Italian investment company Lingotto, Anderson said he had not seen signs of an investment bubble until recently, when the ChatGPT developer, OpenAI, and its rival Anthropic announced hefty valuation increases.

The artificial intelligence race is already producing losers. On Tuesday, education companies trading on the London and New York stock exchanges saw hundreds of millions wiped from their valuations after Chegg, a US firm that provides online help to students for writing and maths work, said ChatGPT was affecting customer growth. The firm said it had seen a "significant spike" in students using the technology, and withdrew its profits guidance for the rest of the year, warning revenues had already been hit. It shares almost halved in value. The ripples were felt in London, where education giant Pearson's stock closed down 15%.