URGENT UPDATE: Nokia CEO Justin Hotard has declared that investments in artificial intelligence (AI) are set to continue surging, describing the current landscape as a “super cycle” with massive long-term prospects. Speaking to CNBC on October 15, 2023, Hotard revealed that AI is not just a fleeting trend but a “secular growth trend for many years.”
Hotard, who took over as Nokia’s president and CEO in April, emphasized that the momentum behind AI is just beginning. He stated, “If you look at what we are doing in AI today, we are largely using large language models for language-based applications.” He highlighted that key areas like autonomous vehicles, augmented reality, and robotics are still in their infancy, indicating vast potential for growth.
The CEO expressed concern over the short-term view many investors take regarding AI, warning against labeling it as a bubble. “Yes, we had a bubble in the internet,” he noted, “but over a two, three, or five-year period, you see that bubble burst, and then you see tremendous growth well above where the bubble was.” He believes that the current demand for AI and the network buildout it has created is indicative of sustainable growth, not a temporary spike.
Hotard’s insights come as tech companies are pouring billions into AI. Meta CEO Mark Zuckerberg recently announced plans to invest at least $600 billion in U.S. data centers and infrastructure through 2028. In a September podcast, Zuckerberg acknowledged the possibility of an AI bubble but advocated for over-investment in the sector to avoid missing out on future opportunities.
Commenting on the investment frenzy, Nick Clegg, Meta’s former president of global affairs, remarked that the AI sector displays characteristics of a bubble, noting an “absolute spasm of almost daily, hourly deal-making.” Clegg’s warnings reflect a growing concern among industry leaders about the sustainability of current investment levels.
Hotard’s remarks underscore a pivotal moment for AI as the world witnesses unprecedented advancements. The urgency of these developments cannot be overstated, with significant implications for various industries and economies globally.
As the AI landscape continues to evolve, industry watchers should keep a close eye on how these investments unfold and what new applications emerge. The next few quarters will be crucial in determining whether this “super cycle” truly maintains its momentum, as predicted by leaders like Hotard.
Stay tuned for more updates on this developing story, as the future of AI investments appears brighter than ever.
