Former Google CEO Eric Schmid says that AI is not a bubble, but a whole new industrial structure
Eric Schmidt, former Google CEO and who are active in technology and policy circles, believe that AI Boom is not a bubble, but a fundamental change in industrial structure. He says that AI has long -term viability given his hardware demand and future innovation.
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In short
- Eric Schmid says that AI dot-com will not burst like a bubble
- Former Google CEO AI says as a whole new industrial structure
- The biggest limit for AI for Schmidt is not chips or funding, but something else
Eric Schmidt, former CEO and Chairman of Google, know about one or two bubbles. Eventually, he was leading Google when the company was navigating after the chaos of a dot-com bubble burst in the early 2000s. At that time the Internet was seen as a revolutionary technology, which quickly saw the investment of billions of dollars. However, everything fell apart with a few years as investors did not get the expected benefits. Now, many analysts are predicting that the promotion around AI can be found in the same luck. But Schmid does not believe that history is repeating itself.
Speaking at The Rise Summit in Paris, Schmidt dismissed the growing concerns that the AI Boom was leading for a comparable accident. “I think this is not possible, depending on my experience, it’s a bubble,” Schmit said. “It is very likely that you are seeing a whole new industrial structure” (through business insider).
Schmid’s comments come at a time when AI is a hot theme and investors are once again in all, eager to put their money on this new revolutionary technology. Since the introduction of Chatgpt at the end of 2022, Major Tech firms have fun the Arabs in AI development, talent acquisition and infrastructure. Companies such as Openai, Google, and Meta are at the forefront, racing to secure the top AI talent and build the infrastructure required to reach first superintendent. According to reports, the Global AI market, estimated at $ 189 billion in 2023, is shocking for $ 4.8 trillion by 2033.
While a lot of curiosity and hope, there are many questions whether AI is being overheep, and whether it can withstand the same fate as the Dot-Com’s era, possibly triggering a market accident. At that time, the Internet was seen as a revolutionary technology, inspiring investors to insert money in internet companies in anticipation of large -scale future profits. However, by 2000–2001, with some profits in sight, the bubble exploded and erased trillions in the price.
The Chief Economist of Apollo Global Management, TORSTUN SLOCH recently warned that the current AI Serge Dot-Com may represent a larger bubble compared to the era. Slok wrote in a note published on Wednesday, “The top 10 companies in S&P 500 are more overwelled than the 1990s today.”
Conversely, the shamit indicates the hardware demands of AI as a sign of its long -term viability. “You have these massive data centers, and Nvidia is quite happy to sell them all chips,” he said in Paris. “I have never seen a situation where hardware capacity was not taken by software.”
No extremeness, limited by electricity
Schmidt accepts that many people are concerned about the risk of “overbuilding” and “overcapacea” in two or three years. However, he sees it as a common cycle of ups and downs rather than a proof of a adjacent collapse. “This is a classic bubble, isn’t it?” Schmid k “If you believe that they are going to be a defined aspect of humanity, it is under-healed and we need even more,” he said.
Meanwhile, Schmidt has also addressed the challenges of AI and believes that the greatest obstacle to make superintendent can be. In a recent episode of Moonshots Podcast with Peter Diamondis and Dave Blundin, Schmidt identified electricity – chips or no money – as the correct limited factor for the progress of AI. “The natural boundary of AI is electricity, not chips,” he said, warning that the US may require an additional 92 gigawatt power to support the future AI infrastructure.
In a LinkedIn Post, he wrote: “It is advisable to predict that we are going to do special AI servants in every field within five years. Now imagine their abilities and how they will change the society and our day-to-day life.”
