Nokia CEO Declares AI a ‘Super Cycle’ Amid Massive Investment Surge

UPDATE: Nokia CEO Justin Hotard has just declared that investments in artificial intelligence (AI) are set to continue unabated, calling it a “super cycle” with “massive” long-term prospects. Speaking to CNBC on October 15, 2023, he emphasized that we are only at the beginning of a significant growth trend in AI technology.

Hotard, who took the helm at Nokia in April 2023, stated, “I think this is a secular growth trend for many years.” He pointed out that the current applications of AI, particularly with large language models (LLMs), are just the tip of the iceberg. “Autonomous vehicles, augmented and virtual reality, and robotics are still in the early days of penetration,” he added, highlighting the vast potential ahead.

This announcement comes amid a flurry of investment in AI across the tech sector. Hotard noted that AI has created a “tremendous demand around the network buildout,” suggesting that the momentum is not just a fleeting trend. He cautioned against the short-term view that AI may be in a bubble, recalling the internet bubble of the late 1990s. “Even after the bubble burst, we saw tremendous growth well above where it was,” he explained.

Meanwhile, Nick Clegg, former president of global affairs at Meta, voiced concerns in the same interview, stating that AI investments exhibit signs of a bubble. Clegg remarked, “There’s just an absolute sort of spasm of almost daily, hourly, dealmaking,” suggesting that a correction could be on the horizon.

As tech giants pour billions into AI, Meta CEO Mark Zuckerberg recently announced an ambitious plan to invest at least $600 billion in U.S. data centers and infrastructure through 2028. He acknowledged the possibility of an AI bubble but expressed a preference for over-investment rather than under-investment. “If we end up misspending a couple of hundred billion dollars, that is going to be very unfortunate,” he stated.

The implications of these developments are profound. Companies are increasingly relying on AI to enhance their operations and drive innovation. The potential applications are vast, spanning from smart glasses to advanced robotics, indicating that we are just scratching the surface of AI’s capabilities.

As AI continues to evolve, industry leaders are urging stakeholders to maintain a long-term view. Hotard’s comments signal that Nokia is committed to leading in this transformative space, with a clear focus on the future of AI and its ramifications for technology and society.

The outlook remains uncertain, but one thing is clear: the rush towards AI is not slowing down. With significant investments being made, the conversation around AI will only intensify in the coming months. Stay tuned for more updates as this story develops.