Boardroom Talks: Business Insights
AI Boom 2025: Top Runners Nvidia, Microsoft
[MUSIC] >> Welcome to Quick News. This is Ted. The news was published on 1231 on Tuesday. Today, we're diving deep into the recent Wedbush Securities Report predicting massive growth in AI, especially spotlighting NVIDIA and Microsoft. Joining us for this conversation are Eric and Kate. >> This prediction is insane. We're talking about $2 trillion. It clearly highlights the massive investments in AI, showing just how much confidence there is in the technology. That's like saying, "Hey, the future is here and it's all about AI." >> While it's a significant figure, it's important to note it's spread over three years. Let's not forget, capital expenditure on this scale isn't unprecedented in tech. We've seen similar numbers when the Internet was booming. It's all about perspective. >> But it's still huge. >> The fact that the report highlights less regulation is a massive point. We're seeing the tech giants get- >> Less regulation is good. It allows for rapid innovation. Big tech has been strangled by red tape for too long. >> What about the idea of a consumption phase for AI in 2025? Can you explain what that means? >> Sure, it means businesses will finally start using AI on a larger scale. The infrastructure is in place. Now it's time for consumption. It's kind of like how we built a highway and now the cars can finally zoom on it. >> It's more than just consumption. It's about integration. AI will become part of everyday operations for many companies, like how smartphones became part of our daily lives. >> Exactly, and NVIDIA's processors are crucial here. They're described as essential infrastructure for all this AI development. It's like the power- >> And let's not forget the potential economic and geopolitical issues that- >> Those are always there. But tech firms thrive in adversity. They've shown that time. And again, look at how they've navigated past challenges. >> Can you unpack the role of cloud services like Azure, Google Cloud, and AWS in this AI boom? >> These services are vital. They provide the computational power needed for AI. Without them, none of this growth happens. It's like having a robust engine for a high-speed car. >> Absolutely, but also they make AI accessible. Smaller companies can leverage these cloud services for their AI needs without huge upfront costs. It's the great equalizer. >> So we're looking at a democratization of AI, if you will. But we should also worry about monopoly. >> True, but competition among these cloud giants keeps them in check. It's a self-balancing act in many ways. >> Let's take a step back. Can we think of a historical event similar to this predicted AI growth and what can we learn from it? >> I draw parallels with the dot-com boom of the late 90s. Back then, the internet and related technologies were the investment darlings. Much like AI is now, it's the same song. Just a different verse. >> But the dot-com bubble burst. That period was marked by speculative investments without real value, leading to massive losses. We could see a similar fate with AI if we aren't careful. History has a way of repeating itself if we ignore the lessons. >> Not necessarily. The technology behind AI today is much more robust and integrated into society's fabric. Unlike the dot-com boom, AI has clear applications and immediate benefits. It's a different ball game. >> What were some of the key factors that led to the dot-com crash? >> Overvaluation was a big one. Companies without any real product or revenue were valued highly. The bubble was purely speculative. It was like betting on air. >> True, but today's AI companies like Nvidia and Microsoft have existing profitable business models. They aren't just projecting future earnings, they're already delivering. It's a safer bet. >> And yet, we can't ignore economic headwinds. Just like in the late 90s, any economic downturn could severely impact these product- >> Economic headwinds are a constant. What's different now is the global digital infrastructure we have, which wasn't present during the dot-com bubble. We've got more safety nets. >> What should investors and companies learn from the dot-com bubble to avoid a similar outcome? >> Be cautious with valuations. Just because AI is the buzzword doesn't mean every company is worth billions. Look at the fundamentals. >> And diversify investments. Relying too heavily on one sector is risky. Having a balanced approach can mitigate potential losses. It's about spreading your bets wisely. >> All right, how about the role of government regulations then and now? >> Regulations were virtually non-existent during the dot-com era. And that free for all contributed to the bubble. Today, we still see tech giants enjoying minimal regulation. It's a bit too wild west. It's true, but instead of stifling innovation with more regulations, we should focus on smart regulations that balance growth and accountability. It's like having traffic rules that don't make driving impossible. >> Let's turn our gaze to the future. How do you see things unfolding if AI investments continue as predicted? >> I see a future where AI drives efficiency and productivity across all sectors. Jobs of the future will be those managing and developing AI systems. It's an evolution of the workforce. >> I'm more skeptical. Rapid AI growth could lead to significant job displacement. People will lose their jobs to machines and there isn't enough being done to retrain them. It's a scary thought. >> AI has the potential to create as many jobs as it displaces, if not more. It's about shifting the workforce, not eliminating it just like how automation once did. >> Shifting the workforce is easier said than done. Retraining programs are expensive and slow. >> What about the tech companies roles in shaping this future? >> Tech companies need to take responsibility for the social impact of AI. They can't just chase profits. They must invest in worker retraining and education. It's their social duty. >> And they are. Microsoft, for instance, has numerous retraining programs. However, the government should also play a role here. It's a team effort. >> The government's role should be substantial. It's their job to protect the workforce, and that includes managing the transition to an AI-driven economy. It's a big responsibility. >> How do you see international competition playing out in this AI landscape? >> Competition will be fierce. Countries investing heavily in AI will pull ahead economically and militarily. The US needs to stay at the forefront to maintain its lead, it's a race. >> And that's precisely why we need to be cautious. An AI arms race is the last thing we need. A cooperative global approach would be better for everyone. Collaboration over competition. >> Cooperation is ideal, but realism suggests that nations will compete. The key is finding a balance between competition and collaboration. >> Finally, what about privacy concerns with AI growth? >> Privacy is a huge issue. With AI's capability to analyze massive amounts of data, we need robust safeguards to protect individual privacy. It's a pressing matter. Privacy concerns are valid, but they shouldn't halt AI's progress. We need to develop tech-based solutions to ensure privacy without stifling innovation. It's about creating a feasible middle ground. >> Thanks for the lively discussion, folks. That's all the time we have today. Stay tuned for more insights on quick news.