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Speaker 1: Andrew Curtain, Milford Asset Management is with us. Hello Andrew, afternoon.

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Speaker 1: Hit it Now a lot of us are trying to

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Speaker 1: figure out whether we're in an AI bubble or not.

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Speaker 1: Have we seen signs we might be, Yeah, there's this

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Speaker 1: sign to be more and more signs which are a

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Speaker 1: little bit concerning. Just the shared numbers that have been

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Speaker 1: talked about that's been spent in AI at the moment

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Speaker 1: is becoming quite outstanding. So globally we're talking about six

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Speaker 1: hundred billion dollars been invested in AI data centers, So

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Speaker 1: these are the data centers that are full of these

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Speaker 1: super chips which run the AI models. But that number

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Speaker 1: is expected generally by the market to go to over

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Speaker 1: one trillion per annum over the next couple of years.

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Speaker 1: And if you believe the CEO of DA Video Agents

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Speaker 1: and Huang, he's talking about three to four trillion annually

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Speaker 1: been spent by the end of the year. So that's

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Speaker 1: that's around two and a half percent of the global GDP.

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Speaker 1: So it's just three incredible numbers that you're talking about.

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Speaker 1: And then so amongst that, you're getting a lot of

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Speaker 1: stock prices which are and then certain companies which which

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Speaker 1: are flying very high, up sort of one hundred percent

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Speaker 1: this year, up over a couple of hundred percent over

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Speaker 1: a couple of years, so it's kind of a few

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Speaker 1: are the signs that are of the bubble, and a

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Speaker 1: lot of sort of deals happening into between companies, Open

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Speaker 1: ai signing deals with all sorts of companies, so this

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Speaker 1: is becoming a little bit more concerned. So are you

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Speaker 1: going to make a call whether we're in an AI

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Speaker 1: bubble or not. It's a really really difficult question to

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Speaker 1: answer because one of those ones, that's if the technolo

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Speaker 1: if AO technology ends up delivering on what it's hyped

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Speaker 1: to be, and so what the people like Sam Oltman

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Speaker 1: from open ai and Jenson and Lanquin never If it

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Speaker 1: does what they say it's going to do, then you

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Speaker 1: can probably justify what's going on, right, But the problem

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Speaker 1: is doesn't meet those expectations over the next few years,

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Speaker 1: and if it falls short of those expectations, if all

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Speaker 1: of a sudden, AI isn't the game changing technology we

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Speaker 1: thought it was going to be, and it does all

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Speaker 1: the jobs for us and we can focus on important

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Speaker 1: tasks rather than doing sort of time intensive data processing,

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Speaker 1: then then all this all this investment is probably going

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Speaker 1: to be overdone and they will prove to be a bubble.

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Speaker 1: But one of the challenges and that you sort of

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Speaker 1: have them trying to sort of time times that when

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Speaker 1: the spending might slow down, is actually looking at the

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Speaker 1: companies that are that are doing the spending. And in

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Speaker 1: previous technology cycles was funded by companies that maybe weren't

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Speaker 1: quite as strong as what the ones are doing it today.

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Speaker 1: So the company spending the most in AI are the

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Speaker 1: likes of Microsoft, Amazon, Google, Meta. You're talking about multi

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Speaker 1: trillion dollar companies with hundreds of billions that dollars a

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Speaker 1: cash on their balance sheet. And if they want and

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Speaker 1: they do believe in this technology at the moment, you

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Speaker 1: listen to the CEOs and they absolutely believe in the technology.

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Speaker 1: So if they want to increase the spending, they can

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Speaker 1: easily do that. And if they decide to do that,

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Speaker 1: then the share prices may well keep going up in

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Speaker 1: a lot of these companies. So what are the developments

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Speaker 1: that you're going to be looking out for in the

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Speaker 1: I don't know, let's say the coming weeks. Right now,

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Speaker 1: we've got the results seasons kicking off in the US

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Speaker 1: next week. We in the space of two days. We

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Speaker 1: have all the largest technology companies in the world reporting results,

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Speaker 1: so Microsoft, Amazon, Google, Meta, and Apple. Now what the

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Speaker 1: market's going to be really focused on is what they

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Speaker 1: say one about AI and the technology. And I think

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Speaker 1: it's pretty much a given that they're all going to

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Speaker 1: say the technology is great and it's going to change

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Speaker 1: the world. But do they follow that through with a

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Speaker 1: big increase in capital spending expectations? So do they come

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Speaker 1: out and say, oh, look, we're going to now increase

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Speaker 1: sell AI data center investments by another ten to twenty

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Speaker 1: billion dollars versus what we told you three months ago.

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Speaker 1: And if they do that, that might give the market

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Speaker 1: legs to continue. The risk is the market sort of

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Speaker 1: is expecting them to do to come out with that statement,

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Speaker 1: and if they're a bit softer than expected, then that

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Speaker 1: could spook the market and you actually get a sell off.

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Speaker 1: Very interesting stuff, Andrew, thank you so much. It's a

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Speaker 1: fascinating topic. I'm looking forward to to seeing how this

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Speaker 1: plays out. Andrew Curtain, Milford Asset Management. For more from

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Speaker 1: Heather Duplessy, Allen Drive, listen live to news talks. It'd

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