Former Google CEO Eric Schmidt explains why the AI wave is no bubble, but a new industrial shift
However, critics of AI have drawn parallels with the dot-com bubble of the late 1990s, and some, such as Torsten Slok, Chief Economist at Apollo Global Management, have warned that today's top AI stocks are even more overvalued than those in the dot-com era. Apart from Slok, Alibaba Group Chair Joe Tsai has also warned that US AI stocks are in a bubble.
Amid rising scepticism around AI, Schmidt — who is also an investor in leading AI companies such as Anthropic and Perplexity — highlights the increasing number of large data centres powered by Nvidia's chips to demonstrate that the AI industry is not experiencing a bubble.
Speaking at the RAISE summit in Paris, Schmidt said, "So, if if you if you ask most of the executives in the industry, they will say the following. They'll say that we're in a period of overbuilding. They'll say that there will be over capacity in two or three years. And when you ask them, they'll say, "But I'll be fine and the other guys are going to lose all their money." So that's a classic bubble, right?"
'I personally don't know. Um, I've looked at this pretty hard because you have these massive data centers and Nvidia is quite happy to sell them all the chips, you know, and uh the real estate developers are used to borrowing money to build these things. I've never seen a situation where hardware capacity was not taken up by software.'
'So I think it's it's unlikely based on my experience that this is a bubble. It's much more likely that you're seeing an whole new industrial structure.' Schmidt further noted.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
China PM warns against a global AI 'monopoly'
China PM warns against a global AI 'monopoly' China will spearhead the creation of an international organisation to jointly develop AI, the country's premier said, seeking to ensure that the world-changing technology doesn't become the province of just a few nations or companies. Artificial intelligence harbours risks from widespread job losses to economic upheaval that require nations to work together to address, Premier Li Qiang told the World Artificial Intelligence Conference in Shanghai on Saturday. That means more international exchanges, Beijing's No 2 official said during China's most important annual technology summit. Li didn't name any countries in his short address to kick off the event. But Chinese executives and officials have taken aim at Washington's efforts to curtail the Asian country's tech sector, including by slapping restrictions on the export of Nvidia chips crucial to AI development. On Saturday, Li acknowledged a shortage of semiconductors was a major bottleneck, but reaffirmed President Xi Jinping's call to establish policies to propel Beijing's ambitions. The govt will now help create a body - loosely translated as the World AI Cooperation Organization - through which countries can share insights and talent. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Beautiful Female Athletes Right Now Undo "Currently, key resources and capabilities are concentrated in a few countries and a few enterprises. If we engage in technological monopoly, controls and restrictions, AI will become an exclusive game for a small number of countries and enterprises," Li told hundreds of delegates huddled at the conference venue on the banks of Shanghai's iconic Huangpu river. China and the US are locked in a race to develop a technology with the potential to turbocharge economies and - over the long run - tip the balance of geopolitical power. This week, US President Donald Trump signed executive orders to loosen regulations and expand energy supplies for data centers - a call to arms to ensure companies like OpenAI and Google help safeguard America's lead in the post-ChatGPT era. At the same time, the breakout success of DeepSeek has inspired Chinese tech leaders and startups to accelerate research and roll out AI products. The weekend conference in Shanghai - gathering star founders, Beijing officials and deep-pocketed financiers by the thousands - is designed to catalyze that movement. The event, which has featured Elon Musk and Jack Ma in years past, was launched in 2018. This year's attendance may hit a record because it's taking place at a critical juncture in the global race to lead GenAI development. It's already drawn some notable figures: Nobel Prize laureate Geoffrey Hinton and former Google chief Eric Schmidt were among heavyweights who met Shanghai party boss Chen Jining Thursday, before they were due to speak at the event.
Time of India
4 hours ago
- Time of India
Sundar Pichai net worth: How rich is the Google CEO - is he a billionaire?
Sundar Pichai, the CEO of Alphabet Inc., which owns Google, has officially become a billionaire. As of now, Pichai's net worth is estimated at $1.1 billion, according to the Bloomberg Billionaires Index. This billionaire status comes mainly from: Explore courses from Top Institutes in Please select course: Select a Course Category Data Analytics Degree Management Others Digital Marketing Public Policy Artificial Intelligence Leadership Product Management others Cybersecurity PGDM MBA Data Science Healthcare Design Thinking Technology Data Science Finance CXO Operations Management Project Management healthcare MCA Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details His 0.02% ownership stake in Alphabet. Large cash reserves he's built up. Alphabet, the parent company of Google, has a market value of over $2.3 trillion, which helped boost the value of Pichai's shares. In the past month alone, Alphabet's Class A stock jumped by 13%, which gave a fresh boost to Pichai's personal fortune, as per the report by Bloomberg. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Highlights from Bollywood 2025 that captured attention Learn More Undo Pichai didn't found google — but still became a billionaire Unlike other tech billionaires like, Mark Zuckerberg, Elon Musk and Jensen Huang. Pichai did not start Google himself. Because of that, Pichai never had a massive stockholding from the early days of the company — which is why his net worth is much lower than those founders. His billionaire status came only after years of compensation packages and steady stock gains at Alphabet, as per the report by Fortune. ALSO READ: SpaceX launches 28 Starlink satellites after rare network outage — Here what you need to know Live Events Pichai has sold a lot of stock over the years Over the last 10 years as CEO, Pichai has sold about $650 million worth of Alphabet shares. If he had kept those shares, they could be worth more than $1 billion today, and his total net worth would be around $2.5 billion instead of $1.1 billion. For example, in June 2025, Pichai sold about 33,000 Class C Alphabet shares at $169 each, earning about $5.5 million. But now those same shares are worth around $193 each, meaning they'd be worth over $6.4 million. Despite these sales, Pichai has stayed disciplined and transparent — and follows a legal rule called Rule 10b5-1, as stated by Fortune report. Why Pichai's share sales are legal and planned in advance Pichai's stock sales are made under Rule 10b5-1, a SEC-approved rule that lets executives plan their stock sales in advance. This rule: Prevents insider trading. Uses a pre-set formula to decide how many shares to sell, at what price, and on what date. Requires an independent third party to handle the sales. His recent sales on June 4 and July 16, 2025, were both made under this rule. Other top CEOs like Jensen Huang of Nvidia also use this same method. Fortune reported last summer that Huang was selling around $14 million in stock almost daily using Rule 10b5-1. James Reda, a compensation expert from Gallagher's HR consulting firm, explained this approach makes sense. He said, 'If you don't sell stock, you may end up like Elon Musk—borrowing big loans using stock as collateral.' Selling some shares regularly is a safer way to manage wealth, according to Reda. AI Boom Helps Push Pichai Into the Billionaire Club A big reason for Alphabet's recent stock growth is the AI boom. On Alphabet's Q2 earnings call, the word 'AI' was used around 90 times, showing how important it is to the company's strategy. The company reported 14% revenue growth year-over-year, reaching $96.4 billion in Q2, according to the report by Fortune. Google Search, YouTube ads, Google Cloud, and subscriptions all saw double-digit growth in the quarter. The stock rally—and Pichai's wealth jump—are part of a larger trend. In 2023, tech billionaires like Musk, Zuckerberg, and Larry Ellison added $585 billion combined to their fortunes, mostly thanks to AI. What Pichai said about keeping AI talent at Google Investors are concerned about whether big AI companies can hold on to their best people, especially after some staff left OpenAI to join Meta's AI team. But Pichai seemed confident on the earnings call. He said, 'We've always invested deeply in talent, including AI, for over a decade now.' ALSO READ: JD Vance torches Microsoft for axing US jobs while doubling down on H-1B visas He explained that top AI researchers care about: Working on cutting-edge technology Having access to top computing power Collaborating with the best people in the industry Pichai added that Google is competitive in all these areas and expects to keep attracting and retaining top AI talent. Sundar Pichai is now officially a billionaire. His wealth mostly comes from a small stake in Alphabet and steady compensation. He has sold a large number of shares over time—but in a legal, well-planned way. The AI boom has boosted Alphabet's value and helped grow his fortune. Pichai's path to billionaire status is different from that of the founders, but still impressive, according to the report by Fortune. FAQs Q1. Is Sundar Pichai a billionaire now? Yes, Sundar Pichai is officially a billionaire with a net worth of $1.1 billion, thanks to his Alphabet shares and long-term compensation. Q2. .How did Sundar Pichai become so rich if he didn't start Google? He became wealthy through years of stock awards, a 0.02% stake in Alphabet, and the company's AI-driven growth, despite regularly selling shares.
Hindustan Times
4 hours ago
- Hindustan Times
Plan to develop Lucknow as India's 1st AI City gets ₹10,732-crore push
The state capital has received a corpus of ₹10,732 crore for developing the AI ecosystem under the IndiaAI Mission approved in March 2024. The move comes at a time when plans are afoot to develop Lucknow as the country's first AI City. According to the state government, this investment is 67% higher than any other technology infrastructure in the country. (FOR REPRESENTATION) The initiative is part of a major push to develop Uttar Pradesh as the new IT destination. The proposed investment is meant for 10,000 Graphics Processing Units, multi-modal language models and an AI innovation center. The state government will soon come up with the draft AI policy in line with Vision 2047. According to the state government, this investment is 67% higher than any other technology infrastructure in the country. Apart from this, a high-tech AI-based traffic management system is being proposed for Lucknow. Prime Minister Narendra Modi's constituency, Varanasi, is already in the process of implementing an AI-enabled smart traffic system. Under the state government's flagship initiative, AI Pragya, over 10 lakh youths, teachers, gram pradhans, government employees, and farmers are being trained in AI, machine learning, data analytics and cybersecurity in partnership with tech giants like Microsoft, Intel, Google, and Guvi. The state government aims to train 1.5 lakh people every month, with industry-ready certifications part of the programme. AI-powered systems such as CCTV surveillance, facial recognition, number plate tracking, and SOS alert systems have been implemented in 17 municipal corporations and Gautam Buddh Nagar. These are directly integrated with the 112 helpline and police control rooms. Additionally, the 'Jarvis' AI monitoring system is active in 70 prisons, ensuring 24x7 surveillance of inmates. Under the UP Agris Project, 10 lakh farmers are being connected to AI-based technologies such as smart irrigation, drone mapping, pest detection, and digital market access. The initiative also involves 10,000 women's self-help groups as active partners. In the revenue department, satellite imaging and AI algorithms are being used for land consolidation and record management. This has enabled accurate digital mapping, transparent land distribution, and reduction of disputes. To protect mineral resources, 57 unmanned AI enabled check gates have been set up across 25 districts. Illegal mining is being monitored using RFID tags, geofencing, and AI camera-equipped weighbridges. In the healthcare sector, the country's first AI-based breast cancer screening centre has been established in Fatehpur, according to the state government.
