Amid a wave of global enthusiasm and a frenzied investment rush toward the artificial intelligence sector, former US President Donald Trump's statement downplayed growing concerns about the formation of a new economic bubble. During his meeting with Hungarian Prime Minister Viktor Orbán, Trump confidently asserted that he was not worried, adding, "I like AI and I think it's going to be very useful," indicating his optimism about the future of this revolutionary technology.
Background to the boom: A race towards the future
Trump's remarks came at a time when the technology sector is undergoing a radical transformation, sparked by the launch of advanced language models like ChatGPT from OpenAI. This achievement was not merely a technological leap, but rather the starting signal for a global race. Tech giants quickly responded; Microsoft poured billions of dollars into OpenAI, while Google and Meta rushed to develop competing models. This race wasn't limited to major corporations; it also saw a massive influx of venture capital into startups, driving their valuations to astronomical levels. Nvidia is a prime example of this boom, having transformed into a behemoth with a market capitalization exceeding trillions of dollars, thanks to its near-total dominance of the graphics processing unit (GPU) market, essential for training and running artificial intelligence models.
Echoes of the past: Are we witnessing a new “dot-com” bubble?
This rapid growth inevitably draws comparisons to the dot-com bubble that burst at the turn of the millennium. In the late 1990s, excessive enthusiasm for any company with a ".com" suffix led to a massive inflation of its stock price, regardless of its profitability or business model, before the market crashed spectacularly. Today's pessimists see parallels in the high valuations that may not yet reflect true earnings. But optimists, including Trump apparently, see the situation as radically different this time. Artificial intelligence, unlike many dot-com companies that were merely ideas, has practical applications and tangible products that are already generating huge revenues and revolutionizing sectors such as healthcare, finance, and transportation.
Geopolitical significance: a battleground between superpowers
Trump did not overlook the geopolitical dimension in his remarks, emphasizing his country's superiority by stating, "We are ahead of China and ahead of the world in artificial intelligence." This statement reflects the fierce competition between the United States and China to dominate this strategic technology. Leadership in artificial intelligence is no longer a technological luxury; it has become a fundamental pillar of economic, military, and security supremacy. This race determines the global balance of power and impacts everything from international trade to military capabilities, making it a central focus of international relations for decades to come.
Market anxiety and a potential correction
Despite Trump's optimistic pronouncements, signs of unease have begun to emerge on Wall Street. Recent days have seen significant declines in the shares of major technology companies, with the Nasdaq falling 1.17% and the S&P 500 dropping 0.62%. These declines have included industry giants like Nvidia and Microsoft. Analysts interpret this pullback as either a natural profit-taking phase after record highs, or perhaps an expression of genuine concerns that current valuations are overvalued. The central question on investors' minds remains: Is this a healthy and temporary correction in a bull market, or is it the first spark of a broader downturn that could shake the foundations of the artificial intelligence sector?
