The CEO of Nokia minimizes the fears of AI

Nokia CEO Justin Hotard said artificial intelligence is driving a long-term growth trend reminiscent of the internet boom of the 1990s, but he downplayed concerns about a potential bubble.

Hotard’s comments come amid a growing debate about whether the surge in AI investment is sustainable.

“I fundamentally believe we’re at the beginning of an AI supercycle, very similar to what happened in the 1990s with the internet,” Hotard said in an interview with Reuters. “Even if there’s a bubble, a minimum, we’ll look at the long-term trends. And right now, all of those trends are very favorable.”

A Bank of America survey this month showed that more than half of fund managers believe AI stocks are in a bubble.

Amazon founder Jeff Bezos and OpenAI CEO Sam Altman also warned that investor enthusiasm could lead to significant losses. Still, demand for data centers is increasing dramatically as companies race to build the infrastructure needed to support AI.