Jamie Dimon says AI isn't a bubble - but some projects may not work out
Briefly

Jamie Dimon says AI isn't a bubble - but some projects may not work out
""You can't look at AI as a bubble. Though some of these things may be in a bubble, in total, it'll probably pay off." Fortune's editor in chief, Alyson Shontell, asked Dimon about statistics like AI investments accounting for 40% of GDP growth and such companies making up 80% of US stock gains this year. Shontell, who was previously Business Insider's editor in chief, also flagged circular AI deals, such as OpenAI taking a stake in AMD and acquiring lots of its chips."
""Remember that capex is roads and cement and steel and servers and connectors - it's a million different things going on," he said. Tech companies are spending hundreds of billions of dollars building data centers to power AI. However, Dimon predicted that not all of these will pan out as planned. "Some of those projects won't get done the way they were announced. Some of them won't get the power they need," he said."
Jamie Dimon said he is not concerned that AI is an overall bubble, though some projects may be overhyped or fail. He noted that AI investment spans many forms of capex — roads, cement, steel, servers, connectors — and involves massive infrastructure spending such as data centers. He warned some announced projects may not be completed or receive necessary power. He urged evaluating projects individually to determine whether they are speculative or will generate productive returns. He concluded that, in aggregate, AI investments will probably pay off despite individual failures.
Read at Business Insider
Unable to calculate read time
[
|
]