Nokia CEO Declares AI Investments Surging Amid ‘Super Cycle’

UPDATE: Nokia’s CEO, Justin Hotard, has just declared that investments in artificial intelligence (AI) are set to surge, asserting that the technology is currently in a “super cycle” with “massive” long-term prospects. Speaking to CNBC on October 15, Hotard emphasized that AI’s growth trajectory is far from slowing down.

Hotard, who took the helm at Nokia in April 2023, stated, “I think this is a secular growth trend for many years.” He highlighted the current state of AI, noting that large language models (LLMs) are primarily being utilized for language-based applications, but the potential for expansion is enormous.

“The reality is that we are still in the early days of penetration for technologies such as autonomous vehicles, augmented and virtual reality, and robotics,” he explained. This statement comes amid a backdrop of rising investments in AI, as tech companies are pouring billions into developing this transformative technology.

Nokia’s CEO pointed out that AI has created “tremendous demand around the network buildout,” contradicting claims that the sector is experiencing a bubble. He referred to past internet investment trends, stating, “Yes, we had a bubble in the internet, but even if you look at that over a two, or three, or five-year period, you see that bubble burst, and then you see tremendous growth well above where the bubble was.”

While Hotard couldn’t predict exact short-term outcomes for AI, he confidently stated, “The long-term prospects are massive.” This sentiment echoes concerns raised by Nick Clegg, Meta’s former president of global affairs, who warned that the current AI investment frenzy bears resemblance to a market bubble, suggesting that a correction may be on the horizon.

In stark contrast, Mark Zuckerberg, CEO of Meta, has committed to investing at least $600 billion in U.S. data centers and infrastructure through 2028. He noted the possibility of an AI bubble but stated a preference for over-investing rather than risking underinvestment. “If we end up misspending a couple of hundred billion dollars, I think that is going to be very unfortunate,” Zuckerberg said.

With AI rapidly transforming industries and creating new opportunities, the stakes are high. As investment flows into this evolving sector, stakeholders are keenly watching for shifts that could redefine the technological landscape.

As Nokia continues to push forward in the AI domain, industry experts are left to ponder: What will be the next major breakthrough? How will these investments shape the future of technology? Stay tuned for more updates as this story develops.