UPDATE: Nokia CEO Justin Hotard just announced that investments in artificial intelligence (AI) won’t slow down, citing a “super cycle” with “massive” long-term prospects. Speaking with CNBC earlier today, Hotard emphasized that we are currently in the midst of a significant growth phase for AI technology.
Hotard, who took the helm as Nokia’s president and CEO in April, stated, “I think this is a secular growth trend for many years.” His comments come as tech companies worldwide continue to pour billions into AI initiatives, signaling a robust commitment to the future of this transformative technology.
During the interview, Hotard elaborated on the many applications of AI, noting that we are just scratching the surface. He highlighted the current use of large language models (LLMs) for communication and pointed out the early stages of autonomous vehicles, augmented and virtual reality, and robotics. “There’s so many applications to come that I think we are very much in the early days,” he asserted.
Hotard also addressed the skepticism surrounding the AI industry, suggesting that many view it through a short-term lens. “Yes, we had a bubble in the internet,” he remarked, but added that historical trends show significant growth often follows such downturns. “It’s hard for me to predict what exactly will happen in AI on a quarter or one-year basis, but I think the long-term prospects are massive,” he concluded.
His remarks resonate amid a backdrop of substantial investment in AI from various tech giants. Just last month, Meta CEO Mark Zuckerberg declared his company would invest at least $600 billion in U.S. data centers and infrastructure through 2028. Zuckerberg indicated a cautious approach, stating, “If we end up misspending a couple of hundred billion dollars, I think that is going to be very unfortunate… But I actually think the risk is higher on the other side.”
In stark contrast, former Meta president of global affairs, Nick Clegg, expressed concerns about a potential AI investment bubble during an interview on October 15. Clegg remarked that the current pace of deal-making in AI is alarming and warned, “This could be headed for a correction.”
The urgency of Hotard’s insights into AI’s potential growth underscores the critical moment we are in. As companies continue to innovate and adapt, the global industry stands on the brink of unprecedented advancements that could reshape various sectors.
What to watch for: As AI technologies evolve, keep an eye on how investments will influence market dynamics and technological breakthroughs. With Nokia and other major players at the forefront, the future of AI remains a compelling narrative that is likely to unfold rapidly.
Stay tuned for more updates on this developing story as the AI landscape continues to evolve, promising both challenges and opportunities in the global tech arena.
