Former Intel chief executive Pat Gelsinger says the momentum inflating the AI bubble is running hotter than many realize and could stay that way for years.
In a new CNBC interview, Gelsinger says the current wave of AI investment is a phase of intense acceleration and leverage, one that’s driving massive spending across chipmaking, data centers, and enterprise systems.
“Are we in an AI bubble? Of course. Right? Of course. We are in that bubble. Of course we are. I mean, we’re hyped. We’re accelerating. We’re putting enormous leverage into the system.”
At the same time, he predicts that the frenzy will persist for years, calling the shift toward AI one of the most profound technological migrations since the birth of the internet.
“That said, I don’t see it ending for several years. I do think we have an industry shift to AI, as [Nvidia CEO] Jensen [Huang] has talked about, and I agree with this, that businesses are yet to really start materially benefiting from it.”
Gelsinger notes that the transition is not limited to semiconductors or cloud computing, but is already restructuring the architecture of the internet itself.
“We’re displacing all of the internet and the service provider industries as we think about it today. We have a long way to go.”
Last week, Ashley MacNeill, head of equity capital markets and managing director at Vista Equity Partners, said the AI boom should be viewed less as a speculative bubble and more as a durable balloon that will inflate and deflate as industries adapt to new technology.
“Is this a bubble that’s going to burst like it did in 1999, or is this more like a balloon where we’re going to see it inflate and deflate as we kind of go through the cycles? Given the longevity of this technology and given the fact that these are waves that are going to adopt this technology, I’m more inclined to think that we aren’t bursting, but rather we’re going to inflate and deflate as this technology ebbs and flows.”
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