UPDATE: Nokia’s CEO, Justin Hotard, has just announced that investments in artificial intelligence (AI) will not slow down, emphasizing that the industry is in the midst of a “super cycle” with “massive” long-term prospects. Speaking to CNBC today, Hotard underscored the urgency of AI’s growth trajectory, stating, “I think this is a secular growth trend for many years.”
Hotard, who took over as Nokia’s president and CEO in April 2023, highlighted the burgeoning demand for AI technologies, especially in network infrastructure. He emphasized that current applications using large language models (LLMs) are just the beginning. “Autonomous vehicles, augmented reality, and robotics are still in the early days of penetration,” he added, indicating an expansive horizon for AI development.
This announcement comes as tech companies globally, including Meta, are pouring billions into AI advancements. Hotard pointed out that the investments are creating a “tremendous demand around the network buildout,” countering claims that AI may be experiencing a bubble. “Yes, we had a bubble in the internet, but you see that bubble burst, and then tremendous growth well above where the bubble was,” he stated.
“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,” Hotard remarked during the interview.
Hotard’s optimistic outlook contrasts with caution expressed by other industry leaders. Nick Clegg, Meta’s former president of global affairs, noted the potential for an AI bubble in an interview on October 15, 2023. He stated, “There’s just an absolute sort of spasm of almost daily, hourly, dealmaking. This could be headed for a correction.”
Meanwhile, Meta CEO Mark Zuckerberg revealed plans to invest at least $600 billion in U.S. data centers and infrastructure by 2028. He acknowledged the risk 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, I think that is going to be very unfortunate,” Zuckerberg said.
As AI technologies evolve and gain traction, the immediate implications for businesses and consumers are profound. The rapid advancements in AI are poised to reshape industries, create job opportunities, and transform everyday experiences.
Looking ahead, all eyes are on how these investments will unfold and the innovations they will bring. With Nokia at the forefront of this “super cycle,” the tech landscape is set for dramatic shifts that will impact economies and societies worldwide.
Stay tuned for more updates as the AI landscape continues to develop rapidly, influencing various sectors and driving new technological advancements.
