Nokia chief executive Justin Hotard said artificial intelligence is fuelling a structural growth cycle similar to the internet expansion of the 1990s, but rejected fears that investor enthusiasm has reached unsustainable levels.
“I fundamentally think we’re at the front end of an AI supercycle, much like the 1990s with the internet,” Hotard told Reuters. “Even if there’s a bubble, a trough, we’ll look to the longer-term trends. And right now, all those trends are very favourable.”
His comments follow a Bank of America survey showing that more than half of fund managers view AI-related stocks as being in bubble territory. High-profile figures including Amazon founder Jeff Bezos and OpenAI CEO Sam Altman have also warned of overvaluation risks.
Hotard, who led Intel’s data centre and AI division before joining Nokia in April, said demand for data infrastructure was driving the company’s performance. “Clearly the incremental, growth investment is driven by data centres,” he said. “It’s a huge step up in volume.”
Earlier on Thursday, the Finnish telecoms equipment maker reported quarterly earnings that exceeded market forecasts, supported by optical and cloud demand tied to AI-driven data centres. The results follow Nokia’s $2.3 billion (£1.9 billion) acquisition of U.S. optical networking firm Infinera [CHECK conversion].
Since selling its mobile phone business in 2013, Nokia has repositioned itself around network technology. It has recently deepened its AI strategy by integrating machine learning into radio access and fibre networks and establishing a dedicated Technology and AI organisation in September, led by Chief Technology Officer Pallavi Mahajan, a former Intel executive.
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Thousands of people gathered across Colombo on Saturday night (30 May) as Sri Lanka's capital came alive with light and colour for Vesak, one of the most important festivals in the Buddhist calendar.
The Paris Saint-Germain (PSG) football team retained its Champions League title at Puskás Aréna in Budapest on Saturday night, after overcoming Arsenal 4-3 on penalties after a tense 1-1 draw following extra time.
The head of the World Health Organization (WHO) travelled to eastern Democratic Republic of Congo on Saturday (30 May), urging communities to seek medical care quickly and follow safe burial practices as authorities work to contain a rapidly growing Ebola outbreak.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May), drawing attention from defence observers and regional analysts.
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
China will send an astronaut to its space station on Sunday for a one-year mission, the longest duration for the country so far. The mission will help study long-duration human physiology in space as China works toward a crewed Moon landing by 2030.
Anxiety over artificial intelligence is hardening among young workers as executives promote faster adoption and companies point to automation in fresh job cuts.
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China has launched the world’s first experiment to study how artificial human embryos develop in space, marking a major step in understanding whether humans could one day reproduce beyond Earth.
Japanese filmmaker Koji Fukada has said that the use of artificial intelligence (AI) to “jump straight to the result” risks undermining the purpose of art, which he believes should be rooted in self-expression and a deeper understanding of the world.
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