"While some business leaders and investors, such as Bill Gates and Michael Burry, have said that the AI boom resembles the dot-com era, Jensen said the world hasn't even reached the speculative phase. Instead, he said, we're still in the phase "where people have no idea what's hitting them," and that most investors don't yet understand how radically AI will reshape markets, geopolitics, and economic growth."
"Jensen said one reason the cycle is different from past tech manias is that AI leaders, including Elon Musk, OpenAI's CEO Sam Altman, and Google, believe the stakes are existential. They "believe that the power to control Earth and the universe is only a couple years away," he said, adding that "they're not motivated by this normal profit incentives of the typical cycle." That mindset means capital expenditure won't slow just because valuations look stretched or funding gets expensive."
The AI bubble is projected to occur in the future rather than having passed. Markets remain before the speculative phase, with many investors unaware of impending scale and impact. AI is expected to radically reshape markets, geopolitics, and economic growth through accelerating capital deployment. Leading AI organizations view the stakes as existential and pursue development beyond normal profit incentives. Capital expenditure on AI infrastructure and capabilities will continue despite stretched valuations or expensive funding. A resource-grab phase is underway, indicating substantial and sustained inflows of capital into AI-related sectors.
Read at Business Insider
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