The euphoria around artificial intelligence may have led to the biggest bubble yet in private technology investing, AZ-VC founder and managing partner Jack Selby said, sounding warning bells that a correction in startup valuations is in the cards.

Consumers are getting used to AI services at "pennies on the dollar of what they actually cost now," Selby said in an interview with Bloomberg TV at the SuperReturn Conference in Singapore. "At some point it's going to have to be priced at cost and probably with some margin. And while that time isn't here yet, it will be here soon enough."