UPDATE: Nokia CEO Justin Hotard has just confirmed that investments in artificial intelligence (AI) are set to continue growing, calling it a “super cycle” with “massive” long-term prospects. Speaking to C NBC on October 15, Hotard emphasized that this trend represents a significant growth opportunity for the tech industry over the coming years.
Hotard, who took the helm at Nokia in April 2023, explained that AI is currently in the midst of a transformative phase. “I think this is a secular growth trend for many years,” he stated, pointing out the vast potential of AI applications beyond current uses. “If you look at what we are doing in AI today, we are largely using LLMs for language-based applications,” he noted.
The CEO elaborated on the early stages of AI penetration in various sectors, including autonomous vehicles, augmented and virtual reality, and robotics, which he believes are only beginning to unfold. “There’s so many applications to come that I think we are very much in the early days,” he asserted.
Hotard addressed concerns regarding a potential AI investment bubble, referencing historical trends in technology. “Yes, we had a bubble in the internet, but even if you look at that 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 explained. He believes that short-term perspectives often overlook the substantial long-term growth that AI promises.
In a related discussion, former Meta president of global affairs, Nick Clegg, expressed caution about the current AI investment climate, suggesting that it exhibits signs of a bubble. Clegg remarked, “There’s just an absolute sort of spasm of almost daily, hourly, dealmaking,” raising concerns about a potential correction.
Tech companies are pouring billions into AI initiatives, with Meta CEO Mark Zuckerberg announcing plans to invest at least $600 billion in US data centers and infrastructure through 2028. Zuckerberg acknowledged the risks of an AI bubble but emphasized the importance of proactive investment. “If we end up misspending a couple of hundred billion dollars, I think that is going to be very unfortunate… I actually think the risk is higher on the other side,” he stated.
As AI continues to evolve and expand, the implications for businesses and consumers alike are profound. With Nokia’s strong commitment to AI-driven innovation, the technology’s future appears promising, positioning it as a critical driver of growth across various industries.
Stay tuned for more updates as the situation develops and the impact of AI investments unfolds globally.
