Nokia CEO Declares AI a ‘Super Cycle’ with Massive Growth Ahead

UPDATE: Nokia CEO Justin Hotard has declared that investments in artificial intelligence (AI) are set to surge as the technology is currently in a “super cycle” with “massive” long-term prospects. Hotard made these statements during an interview with CNBC on October 15, emphasizing the ongoing growth and potential of AI applications.

Hotard, who took the helm at Nokia in April 2023, highlighted that the current AI landscape is only the beginning. “I think this is a secular growth trend for many years,” he asserted. He pointed to the extensive potential for AI in various fields, including autonomous vehicles, augmented reality, and robotics, which are still in their infancy regarding market penetration.

The former Intel executive stated, “If you look at what we are doing in AI today, we are largely using LLMs for language-based applications,” signaling a broad horizon for future developments. He warned against viewing AI as merely a bubble, noting past tech bubbles, including the internet boom, which ultimately led to significant long-term growth.

Hotard’s comments come as investment in AI technology escalates. Major tech players, including Meta, are pouring billions into AI initiatives. Mark Zuckerberg, CEO of Meta, previously announced plans to invest at least $600 billion in U.S. data centers and infrastructure through 2028, emphasizing a cautious approach to potential over-investment in AI.

In a related comment, Nick Clegg, Meta’s former president of global affairs, expressed concerns about the rapid deal-making in AI, suggesting it could lead to a correction. Clegg remarked, “There’s just an absolute sort of spasm of almost daily, hourly, dealmaking,” highlighting the urgency and volatility of the current investment climate.

Hotard’s confidence in AI’s trajectory underscores a pivotal moment for the technology sector as companies seek to capitalize on its vast potential. Experts expect that the next few years will be crucial in shaping the future of AI, making this an essential period for innovation and investment.

As AI technologies continue to evolve, stakeholders across industries will be keenly watching for signs of growth and transformation. The urgency surrounding AI investment reflects its critical role in the future economy, further emphasizing the need for companies to adapt quickly to the ongoing changes in technology.

Stay tuned for further updates on this developing story as we monitor the impact of AI advancements on global markets and industries.