Veteran tech investor Paul Wick argued on Sunday that the AI surge may rhyme with the dot-com era but doesn’t carry the same setup for an imminent crash or a sudden jobs shock.
Is AI Growth Sustainable Or Overblown?
Wick, the chief investor at Seligman Investments within Columbia Threadneedle Investments, told Business Insider in an interview that the early-2000s boom was fueled by a flood of newly formed internet companies and a massive telecom network buildout.
He added the current moment has similarities, including heavy AI-related data-center spending alongside higher interest rates and higher energy costs.
Wick’s case for why the comparison only goes so far starts with market mechanics, according to the report. He said today’s environment lacks the kind of IPO stampede and single-day stock explosions that defined the late-1990s frenzy.
He also contrasted corporate buying patterns, saying that by late 2000 the market was bracing for a pullback in IT budgets, while AI spending by enterprises still looks resilient and recent tech earnings have held up.
Anthropic’s Strong Demand
Anthropic’s own recent revenue trajectory offers another example of strong demand, with third-quarter revenue rising 45% sequentially to $16.8 billion, up 45% from $11.6 billion in the prior quarter and above $4.7 billion in the first quarter.
In Wick’s view, Nvidia’s push to support the broader AI ecosystem is less alarming because he described the chipmaker as “extraordinarily profitable.”
Wick said investors should still watch for signs that customers choose older models or build systems in-house, and for pricing pressure as open-source alternatives spread. Schmidt raised a similar monetization question globally, arguing that even if Western labs keep producing more advanced models, free Chinese options could win users across lower-income markets.
Concerns about leverage have already hit some AI infrastructure companies, with CoreWeave Inc. (NASDAQ:CRWV) recently touching a 52-week low amid worries tied to AI debt.
Wick also pushed back on the idea that AI will quickly wipe out human work, calling that fear a “little premature,” while noting uncertainty about how entry-level roles will change. He said career advice is shifting too, arguing that skilled trades like electricians and HVAC technicians are seeing “booming demand” and can provide an “incredibly good living” without a four-year degree.
Eric Schmidt Says AI Is Not a Bubble
Wick’s view lines up with comments from former Google CEO Eric Schmidt, who has said artificial intelligence is not a bubble while pointing to Anthropic’s fast-growing sales as evidence of real customer demand.
Schmidt has leaned on Anthropic’s revenue trajectory, saying that the company’s pace exceeded Google’s historic growth rate by more than double when he ran the search giant.
Schmidt has a direct financial interest in Anthropic’s fortunes, with Bloomberg reporting he owns about 1% of the company, a stake that could be worth roughly $15 billion to $20 billion depending on Anthropic’s eventual IPO valuation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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