Nokia CEO Justin Hotard said artificial intelligence is fueling long-term global growth similar to the internet boom of the 1990s, while dismissing fears of an AI market bubble.
Speaking to Reuters, Hotard said, “We’re at the beginning of an AI supercycle, much like the early days of the internet. Even if there’s a short-term dip, the long-term outlook remains very strong.”
His comments come amid concerns about the sustainability of massive AI investments. A recent Bank of America survey found that over half of fund managers see AI stocks as being in a bubble. Tech leaders including Jeff Bezos and Sam Altman have also warned that investor overexcitement could trigger losses.
Despite the caution, demand for data centres continues to surge as companies worldwide invest heavily in AI infrastructure. Hotard, who previously led Intel’s data centres and AI division, noted that growth is evident “across the board,” from major tech firms to smaller companies expanding in Europe.
Nokia recently reported stronger-than-expected quarterly results, supported by optical and cloud demand and boosted by its acquisition of U.S. networking firm Infinera. The company’s growing focus on AI marks its biggest transformation since selling its mobile phone business in 2013, with new initiatives led by its Technology and AI division under CTO Pallavi Mahajan.
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