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
Hindustan Times
an hour ago
- Hindustan Times
ChatGPT therapy chats are not private, warns OpenAI CEO Sam Altman
More people are using ChatGPT like a therapist, but that doesn't mean it's private. OpenAI CEO Sam Altman says those kinds of chats don't have the same legal protections you get with real therapists, doctors, or lawyers. OpenAI says deleted chats from Free, Plus, and Pro users are wiped within 30 days unless they're legally required to keep them for "legal or security reasons."(AP) Altman told podcaster Theo Von, 'So if you go talk to ChatGPT about your most sensitive stuff and then there's like a lawsuit or whatever, we could be required to produce that, and I think that's very screwed up.' He went on, 'Right now, if you talk to a therapist or a lawyer or a doctor about those problems, there's like legal privilege for it — there's doctor-patient confidentiality, there's legal confidentiality,' according to Business Insider report. 'We haven't figured that out yet for when you talk to ChatGPT.' Altman said there should be the 'same concept of privacy for your conversations with AI that we do with a therapist' and that it should be 'addressed with some urgency.' Also Read: 'Will AI replace lawyers? Law intern asks to use ChatGPT for witness analysis, gets hard copies instead Youngsters turning to ChatGPT for therapy He said a growing number of people — especially younger users — are turning to ChatGPT for therapy, life advice, or help with relationships. Altman said, 'No one had to think about that even a year ago, and now I think it's this huge issue of like, 'How are we gonna treat the laws around this?'' Unlike end-to-end encrypted apps like WhatsApp or Signal, OpenAI can read your conversations with ChatGPT. Employees sometimes look at chats to improve the AI or to watch for misuse. OpenAI says deleted chats from Free, Plus, and Pro users are wiped within 30 days unless they're legally required to keep them for "legal or security reasons." Back in June, The New York Times and other media outlets asked a court to force OpenAI to save all user chats, even deleted ones, as part of a copyright lawsuit. OpenAI is now appealing that court order.
Time of India
an hour ago
- Time of India
Rs 11 lakh school fee of Google-employed couple's child makes a man rethink his Rs 20 lakh MBA plans
As the cost of private education continues to rise in India's major cities, a recent online discussion has brought attention to how wealthy families are spending staggering amounts on elite schooling. The conversation was sparked by a viral Reddit post that revealed a Google-employed couple spends Rs 11.2 lakh annually on their child's school fees—prompting many to reflect on privilege, class gaps, and the role of expensive institutions in shaping access and opportunity. Eye-Catching School Expense The Reddit post came from a user who claimed to work in a junior position at a small wealth management firm. While reviewing client data, the individual came across the financial details of a young couple who both work at Google and reportedly earn a combined Rs 60 lakh annually. What stood out in their yearly cash flow was a school fee entry amounting to Rs 11.2 lakh for their only child. Explore courses from Top Institutes in Please select course: Select a Course Category MBA Public Policy CXO Project Management Finance healthcare Data Science Data Science Operations Management Technology Design Thinking Degree Product Management Others Management Data Analytics PGDM Cybersecurity Leadership Healthcare others Digital Marketing Artificial Intelligence MCA Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details The user expressed disbelief, noting that while school expenses in the range of Rs 2–6 lakh are not uncommon, this particular figure was significantly higher than anything they had previously encountered. The Redditor also reflected on their own financial choices, sharing how they still hesitate over whether to invest Rs 20–30 lakh in an MBA, highlighting the stark contrast in financial situations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo Internet Reacts: Questions of Privilege, Access, and Intent The post quickly gained traction, sparking a conversation around the culture of elite education. Many users commented on how such high-fee institutions cater to the ultra-rich, offering not just academics but social positioning through association with similarly wealthy peer groups. One commenter pointed out that spending on premium education isn't just about learning—it's often about building networks and absorbing a particular mindset. According to them, what these parents are buying is entry into a social ecosystem that helps children see themselves as part of the country's economic elite from a young age. Others took a more critical tone. A few users questioned whether such spending was justified, especially in a country where access to quality education remains unequal. One sarcastic remark noted that the taxes paid by such couples might be indirectly funding government school education for several other children—and possibly even the foreign education of a politician's child. Not all reactions focused on criticism. Some users shared that even if they could afford such fees, they would still choose more modest schools for their children. These users expressed concerns about the values children might pick up in highly privileged environments. One response emphasized the importance of raising children who remain grounded, empathetic, and in touch with the realities of the broader society, rather than isolated in a bubble of affluence.
Time of India
2 hours ago
- Time of India
'Ireland isn't safe anymore': Indian man issues warning after brutal stabbing attack in Dublin
An Indian man has issued a grave warning to fellow countrymen, urging them to reconsider moving to Ireland after a horrific stabbing incident left another Indian man severely injured and humiliated in public. Sharing his concerns on social media, a user named Daksh wrote: "Can't believe I'm saying this, but Ireland isn't safe. Can't wait to go back home. I used to think this was such an amazing country when I arrived three years ago. I made great friends with the locals, but this place is going downhill fast." Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Cybersecurity Product Management Data Science Leadership Management Data Science Operations Management Degree Artificial Intelligence Others Technology Project Management Healthcare Finance MCA Data Analytics others healthcare Public Policy Design Thinking PGDM CXO MBA Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details He continued: "I once encouraged others to move here. The quality of life was excellent, and the people were usually so kind. But now I'd recommend Germany or the UK instead—and even better, the US—if you're looking to study or work abroad. Racism used to be rare here, but now it's turning dangerous." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo Daksh's warning came in the wake of a shocking attack in Dublin, where an Indian man in his 40s—who had arrived just three weeks earlier to begin work at Amazon—was stabbed in the face, stripped naked, and left bleeding on a road for over an hour. The man was reportedly on his way to a temple when a group of around 10 teenagers ambushed him from behind, falsely accusing him of being a paedophile. — globalwaffles (@globalwaffles) Live Events Local resident Jennifer Murray, who came to the victim's aid, recounted the horrific scene. While driving near a roundabout in Tallaght on Saturday evening, she spotted a large crowd—roughly 30 people, including teenagers and some adults—gathered around. "I noticed a man standing alone, drenched in blood. He was bleeding from head to toe, and his nose wouldn't stop pouring blood. He looked at me and said, 'Please help me, please save me,'' Murray recalled. She immediately put him in her car and waited more than an hour for an ambulance to arrive. Gardaí, Ireland's national police service, confirmed receiving a call around 6 PM. The victim was later taken to Tallaght University Hospital. According to Murray, the attackers punched and kicked the man, slashed his face with a knife, and robbed him of his phone, wallet, shoes, and trousers—leaving him naked and traumatized in public. Murray described the victim as extremely polite and visibly shaken. 'He was so embarrassed and shocked. I gave him a blanket to cover himself up. He could barely speak,' she said. Later, she visited his residence and informed the Indian family hosting him. 'They jumped into action. One of the housemate's wives told me she had warned him that Ireland wasn't safe.' She also revealed that the victim was highly qualified, having studied at one of India's top institutions, and was recruited for a specialized role that couldn't be filled locally. Murray further claimed that the same gang may be responsible for similar attacks on at least four other Indian men, all of whom suffered facial injuries.
