Nokia CEO Declares AI Investments a ‘Super Cycle’ Amid Growing Demand

UPDATE: Nokia CEO Justin Hotard has just announced that AI investments are set to continue surging, describing the current landscape as a “super cycle” with “massive” long-term prospects. Speaking on October 15 during an interview with CNBC, Hotard emphasized that the growth trend for AI is not only sustainable but expected to expand over the coming years.

Hotard, who took the helm at Nokia in April, highlighted the significant demand for AI-driven technologies, stating, “I think this is a secular growth trend for many years.” He pointed to the use of large language models (LLMs) in various applications, noting that industries like autonomous vehicles and augmented reality are still in their infancy. “There’s so many applications to come that I think we are very much in the early days,” he added.

This announcement comes as AI investments continue to escalate across the tech landscape. Hotard criticized the notion that AI is merely a bubble, referencing historical growth patterns following internet bubbles. “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,” he stated, reinforcing his belief in AI’s long-term viability.

In a related discussion, Nick Clegg, former president of global affairs at Meta, expressed concerns about the rapid influx of capital into AI, likening it to a potential bubble. He remarked, “There’s just an absolute sort of spasm of almost daily, hourly, dealmaking. Of course, you have got to kind of think, ‘Oh wow, this could be headed for a correction.’”

The tech industry is pouring billions into AI advancements. Notably, Meta CEO Mark Zuckerberg revealed plans to invest at least $600 billion in U.S. data centers and infrastructure through 2028. In a recent podcast, Zuckerberg acknowledged the risks of a bubble but emphasized the importance of over-investing in AI technologies to avoid missing out on opportunities.

As the conversation around AI intensifies, the implications for the tech sector and global economy are profound. Hotard’s statements signal a robust commitment to AI, indicating a pivotal moment in tech investment strategies.

What’s next? Investors and tech enthusiasts should closely monitor developments in AI applications and corporate investments, as this ongoing “super cycle” could redefine market dynamics and technology adoption in the coming years.