Federal Reserve Chair Jerome Powell doesn’t think the AI boom is another dotcom bubble. In fact, he made that distinction explicit on Wednesday, arguing that the current wave of artificial intelligence investment is grounded in profit-making firms and real economic activity rather than speculative exuberance.
“I won’t go into particular names,” Powell told reporters after the Fed’s policy meeting, “but they actually have earnings.
“These companies … actually have business models and profits and that kind of thing. So it’s really a different thing” from the dotcom bubble, he added.
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