Late Billionaire Charlie Munger, 99, Said Al Was Getting ‘A Lot of Crazy Hype’ And Would Never Cure Cancer — ‘Old-Fashioned Intelligence Works Pretty Well’
Artificial intelligence can promise the future, but billionaire investors still have to figure out what that future is actually worth. Berkshire Hathaway Vice Chairman Charlie Munger had a few thoughts on that, and he wasn’t buying every grand prediction about AI.
At the Daily Journal Corporation’s (DJCO) annual shareholder meeting in February 2023, Munger, then 99, weighed in on the technology as ChatGPT fueled a growing rush of excitement and investment.
“Artificial intelligence is very important, but there’s also a lot of crazy hype on the subject,” Munger said. “Artificial intelligence is not going to cure cancer. It’s not going to do everything that we want done. And there’s a lot of nonsense in it, too.”
He called AI a “mixed blessing,” acknowledging that it had proved useful in areas such as insurance underwriting while questioning whether it could meaningfully improve more ordinary decisions, such as buying an office building.
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His point wasn’t that AI had no value. It was that a technology could be influential without living up to every promise made in its name.
Charlie Munger Had a Warning for Investors Betting on AI
Munger returned to the subject three months later at Berkshire Hathaway’s (BRK.A) (BRK.B) annual shareholder meeting in May 2023, where he offered another memorable line about the technology.
“I am personally skeptical of some of the hype that has gone into artificial intelligence,” Munger said. “I think old-fashioned intelligence works pretty well.”
The remark drew laughter and applause, reflecting the veteran investor’s reputation for delivering sharp assessments without dressing them up in corporate jargon.
By then, enthusiasm for AI was helping drive attention toward technology companies and the businesses building the infrastructure behind it. Investors were weighing the possibility that AI could reshape everything from office work to medicine, while companies raced to show how the technology might change their businesses.
For Munger, the question wasn’t whether AI would have an impact. It was whether the excitement surrounding it was getting ahead of what the technology could actually deliver.
That remains a useful question for anyone looking to invest in the next big thing. A promising technology and a promising investment aren’t automatically the same thing. Even a company developing something transformative can be a poor investment if its future growth has already been priced too optimistically.
Munger’s Final AI Warning Still Resonates
Munger died in November 2023, at age 99, just months after making those remarks. His comments now stand among the most memorable public assessments of AI from one of investing’s most respected figures.
His skepticism also fit a broader pattern in his thinking. Munger was known for favoring clear reasoning, patience, and a willingness to question popular opinion rather than follow a crowd simply because an idea had become fashionable.
That approach offers a useful lens for investors evaluating emerging technologies today. AI may create real opportunities, improve productivity, and open markets that barely exist yet. But enthusiasm alone doesn’t establish which companies will benefit, how much they will earn, or whether their shares are worth the price.
Munger’s message wasn’t to ignore the future. It was to think clearly about it.
For investors caught up in the search for the next big thing, his advice still carries weight: New technology can change the world, but it doesn’t eliminate the need for good judgment.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.