Federal Reserve Jerome Powell said on Oct. 30 that the immense growth in artificial intelligence (AI) investment spending is not a bubble akin to the 1990s.
Powell, speaking to reporters at a post-meeting press conference, said that the current AI buildout is different from the dot-com bubble.
During the dot-com boom, Powell noted, many companies’ valuations surged before filing for bankruptcy due to large losses. Instead, today’s AI investments in chips, data centers, and the overall infrastructure are contributing to broader economic growth.
“This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that,” he said….