Nokia CEO Declares AI Investments Will Surge Amid ‘Super Cycle’

UPDATE: Nokia CEO Justin Hotard announced that investments in artificial intelligence (AI) are set to surge as the technology enters a “super cycle” with “massive” long-term potential. Speaking to CNBC today, Hotard emphasized the enduring growth trajectory of AI, making it clear that the momentum will not slow down anytime soon.

Hotard, who took the helm at Nokia in April 2023, stated, “I think this is a secular growth trend for many years.” He pointed to the vast opportunities within AI, including applications in language models, autonomous vehicles, augmented reality, and robotics, all still in their infancy. “There are so many applications to come that we are very much in the early days,” he added.

The urgency of this announcement comes as tech companies worldwide ramp up their AI investments. Hotard noted a “tremendous demand around the network buildout” driven by AI, challenging the notion that the current investment landscape resembles a bubble. He compared it to the early days of the internet, stating, “Yes, we had a bubble in the internet… but you see tremendous growth well above where the bubble was.”

In stark contrast, Nick Clegg, former president of global affairs at Meta, expressed caution regarding the AI investment boom during a separate CNBC interview on October 15, 2023. Clegg remarked on the frenetic pace of deal-making in the sector, suggesting the potential for a correction in the market.

Meanwhile, Meta CEO Mark Zuckerberg disclosed plans to invest at least $600 billion in US data centers and infrastructure through 2028. He acknowledged the possibility of an AI bubble but emphasized the importance of over-investing rather than under-investing in this transformative technology.

Hotard’s perspective on AI investments is particularly relevant as companies face critical decisions on resource allocation. “It’s hard for me to predict what exactly will happen in AI on a quarter or one-year basis,” he admitted, but he remains optimistic about the long-term prospects, underscoring the ongoing evolution of AI technologies.

This ongoing dialogue around AI investments highlights the contrasting views within the tech industry, with leaders like Hotard championing the technology’s future, while others like Clegg warn of potential pitfalls. As the AI landscape continues to evolve, stakeholders will be closely monitoring these developments for their impact on the market and society.

Stay tuned for more updates as this story develops further.