AI boom may not last, warns ex-Intel CEO
What's the story
Pat Gelsinger, the former CEO of Intel, has warned that the current boom in artificial intelligence (AI) spending is reminiscent of the early internet craze. He cautioned against assuming indefinite growth, noting that while massive innovation was seen during the dot-com era, it wasn't sustainable. His comments come amid concerns that the AI sector may be overheating with companies investing billions in infrastructure and data centers.
Historical parallel
Gelsinger warns investors about potential pitfalls
Speaking with The Business of Platforms Network, Gelsinger said, "We've seen this before," while comparing the current AI spending surge to the early days of the internet. He specifically pointed out optical companies in those times and their exponential growth. However, he also noted that this kind of growth isn't sustainable over long periods, warning investors about potential pitfalls.
Shared concerns
Parallels drawn between AI surge and dot-com bubble
Gelsinger isn't the only one skeptical about AI investments. Other tech leaders, including OpenAI CEO Sam Altman and JPMorgan CEO Jamie Dimon, have also drawn parallels between the current surge in AI spending and the dot-com bubble of the early 2000s. Their shared concerns highlight a growing unease within the industry about potential overvaluation and the sustainability of these investments.
Future outlook
Optimism for AI's long-term potential
Despite his warnings, Gelsinger is optimistic about the long-term potential of AI. He said, "I see fundamentally no change for the next two, three, four years." However, by the end of this decade, he expects some transformational technologies to be at scale. He also predicted major improvements in AI efficiency and power consumption, which would make it more scalable and practical worldwide.