One of the most influential figures in Google’s history considers the current state of the hardware market a sign of AI’s long-term viability.
Eric Schmidt, former CEO of Google, stated at the RAISE summit in Paris that artificial intelligence represents a new and sustainable industrial structure, emphasizing that the rapidly growing field should not be considered a bubble.
Since the emergence of ChatGPT, AI has experienced explosive growth. Reports estimate the AI market was valued at $189 billion in 2023, with projections suggesting it could reach $4.8 trillion by 2033.
Schmidt, who has invested in several AI companies such as Anthropic, pointed to the current boom in the hardware and chip market as a foundation for AI’s stability. He said, “Massive data centers are being built, and Nvidia is enthusiastically launching and supplying AI chips. In the history of technology, we’ve never seen hardware capacity outpace software demand.”
Referring to his conversations with top AI executives, Schmidt noted that some of them view the current moment as a phase of AI overdevelopment and warn that in the next two to three years, we may face excess capacity.
He also remarked that all AI companies seem to believe they will not be the losers in the race. “They all say, ‘We’ll be fine, and the others will lose all their money.’ Isn’t that the classic definition of a bubble?” Schmidt asked.
On the other hand, some AI professionals believe the field will profoundly transform the future of the world and humanity and argue that it requires even more investment than it currently receives.
Schmidt did not endorse either perspective but responded to comparisons with the dot-com bubble by saying, “Based on my experience, it’s unlikely that AI is a bubble. What we’re witnessing is the formation of an entirely new industrial framework.”
