{"id":233350,"date":"2025-10-30T04:44:10","date_gmt":"2025-10-30T04:44:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/233350\/"},"modified":"2025-10-30T04:44:10","modified_gmt":"2025-10-30T04:44:10","slug":"powell-says-ai-different-from-dotcom-bubble-major-source-gdp-growth","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/233350\/","title":{"rendered":"Powell says AI different from dotcom bubble, major source GDP growth"},"content":{"rendered":"

Federal Reserve Chair Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee at the Federal Reserve on Oct. 29, 2025 in Washington, DC. <\/p>\n

Alex Wong | Getty Images<\/p>\n

Federal Reserve Chair Jerome Powell<\/a> said on Wednesday that the artificial intelligence boom is different from the dotcom bubble of the late 1990s.<\/p>\n

“This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that,” Powell said, during a news conference<\/a> following the Fed’s two-day policy meeting<\/a>. <\/p>\n

AI investments in data centers and chips are also a major source of economic growth, he said. In the dotcom era, numerous companies raced to big valuations before going bankrupt due to hefty losses.<\/p>\n

Powell didn’t name specific vendors, but chipmaker Nvidia<\/a> has emerged as the world’s most valuable company, surpassing $5 trillion in market cap. The rally has been driven by the company’s graphics processing units, which are at the heart of AI models and workloads. <\/p>\n

However, while Nvidia is generating big profits, high-valued startups OpenAI and Anthropic have been burning cash as they develop and expand their services. <\/p>\n

OpenAI has racked up\u00a0$1 trillion in AI deals<\/a> of late, despite being set to generate only $13 billion in annual revenue. Anthropic, which is at a $7 billion revenue run rate, last week announced<\/a> an estimated $50 billion cloud partnership with Google<\/a>.<\/p>\n

WATCH: AI market differs from bubble<\/a><\/p>\n

\"AI<\/p>\n","protected":false},"excerpt":{"rendered":"Federal Reserve Chair Jerome Powell speaks during a news conference following a meeting of the Federal Open Market…\n","protected":false},"author":2,"featured_media":233351,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[20690,6146,7796,84,273,1294,1638,6268,4140,86,56,54,55],"class_list":["post-233350","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alphabet-class-a","tag-breaking-news-economy","tag-breaking-news-technology","tag-business","tag-business-news","tag-economy","tag-internet","tag-jerome-powell","tag-nvidia-corp","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/233350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=233350"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/233350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/233351"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=233350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=233350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=233350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}