The AI boom has found another gear. Why can’t people shake off their worries?
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Nvidia’s strong quarter briefly soothed Wall Street worries about AI spending.
PHOTO: ERIC LEE/NYTIMES
Cade Metz
- Nvidia's massive profit surge fuels AI optimism, with CEO Jensen Huang dismissing bubble concerns despite a recent share price dip.
- AI start-ups like OpenAI and Anthropic are spending vast amounts on data centres, funded by debt and potentially circular deals.
- Critics worry about the sustainability of AI investments, citing low business adoption and potential widespread damage if the market crashes, according to Alphabet's CEO Sundar Pichai.
AI generated
SAN FRANCISCO – It would not be a stretch to describe this period of hyperactive growth in the tech industry as a historic moment.
Nvidia, which makes computer chips that are essential to building artificial intelligence (AI), said on Nov 19 that its quarterly profit jumped to nearly US$32 billion (S$41.8 billion), up 65 per cent from a year ago and 245 per cent from the year before that.