{"id":152669,"date":"2025-10-30T04:18:10","date_gmt":"2025-10-30T04:18:10","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/152669\/"},"modified":"2025-10-30T04:18:10","modified_gmt":"2025-10-30T04:18:10","slug":"jerome-powell-says-ai-boom-is-different-from-dotcom-bubble","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/152669\/","title":{"rendered":"Jerome Powell says AI boom is different from dotcom bubble"},"content":{"rendered":"

US Federal Reserve chairman Jerome Powell<\/a> said on Wednesday that artificial intelligence<\/a> is unlike the dotcom bubble of the 1990s, as companies leading the AI race are contributing to economic activity.<\/p>\n

“This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that,” Mr Powell told reporters after the US central bank lowered interest rates by 25 basis points<\/a>.<\/p>\n

He said the dotcom-era firms that went bust were more “ideas rather than companies”, while today’s AI companies have business models and profits. He also said that investment in AI equipment and infrastructure is a source of growth in economic activity. <\/p>\n

Mr Powell did not mention any company by name.<\/p>\n

One analysis from JPMorgan<\/a> released last month showed AI-related capital expenditures contributed to 1.1 per cent of economic growth in the first half this year, passing consumer spending as the driver of expansion. Hyperscalers are also projected to allocate $342 billion to capital expenditures this year, the report said.<\/p>\n

Earlier on Wednesday, chip maker Nvidia became the first company in the world to reach a market value of $5 trillion<\/a> on lofty AI hopes.<\/p>\n

Meanwhile, Qualcomm joined the AI data centre race<\/a> this week when it announced the AI200 and AI250 chips, while also unveiling Saudi tech startup Humain as its first major buyer.<\/p>\n

Microsoft topped $4 trillion in market value after it reached a deal with OpenAI on Tuesday that would allow the ChatGPT maker to restructure as a public benefit corporation, or PBC.<\/p>\n

Microsoft will hold a stake of $135 billion \u2013 or 27 per cent \u2013 in the OpenAI Group PBC that would be controlled by the OpenAI Foundation. Microsoft has invested more than $13 billion in OpenAI.<\/p>\n

Anthropic, which is a private company, announced a cloud deal with Google last week worth tens of billions of dollars.<\/p>\n

Mr Powell said the Fed is also closely monitoring how AI could affect the jobs market.<\/p>\n

Apple recently announced that it is laying off 14,000 workers after cuts among other Big Tech companies. Microsoft has made more than 15,000 cuts this year, while Meta and Google have also made layoffs.<\/p>\n

“You see a significant number of companies either announcing that they are not going to be doing much hiring or actually doing layoffs, and much of the time they’re talking about AI and what it can do,” he said.<\/p>\n

“So we’re watching that very carefully.”<\/p>\n

BMW M5 specs<\/p>\n

Engine: <\/strong>4.4-litre twin-turbo V-8 petrol enging with additional electric motor<\/p>\n

Power:<\/strong> 727hp<\/p>\n

Torque: <\/strong>1,000Nm<\/p>\n

Transmission: <\/strong>8-speed auto<\/p>\n

Fuel consumption:<\/strong> 10.6L\/100km<\/p>\n

On sale: <\/strong>Now<\/p>\n

Price:<\/strong> From Dh650,000<\/p>\n

The currency conundrum<\/p>\n

Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. \u201cThe US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China\u2019s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.\u201d<\/p>\n

Most countries now actively want a weak currency to make their exports more competitive. \u201cChina seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support,” says Mr Mould.<\/p>\n

This is a race to the bottom, and everybody wants to be a winner.<\/p>\n

The%20Sandman<\/p>\n

%3Cp%3ECreators%3A%20Neil%20Gaiman%2C%20David%20Goyer%2C%20Allan%20Heinberg%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Tom%20Sturridge%2C%20Boyd%20Holbrook%2C%20Jenna%20Coleman%20and%20Gwendoline%20Christie%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A<\/p>\n

Abandon
Sangeeta Bandyopadhyay
Translated by Arunava Sinha
Tilted Axis Press\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"US Federal Reserve chairman Jerome Powell said on Wednesday that artificial intelligence is unlike the dotcom bubble of…\n","protected":false},"author":2,"featured_media":152670,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[289,79,6671,179,18,19,17,5129,1702,1217],"class_list":{"0":"post-152669","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-artificial-intelligence","9":"tag-business","10":"tag-business-team","11":"tag-economy","12":"tag-eire","13":"tag-ie","14":"tag-ireland","15":"tag-jerome-powell","16":"tag-standard","17":"tag-story"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115461193911440590","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/152669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=152669"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/152669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/152670"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=152669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=152669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=152669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}