Powell says AI is different from dotcom bubble and is major source of economic growth

Group 1 - Federal Reserve Chair Jerome Powell stated that the current artificial intelligence boom is distinct from the dotcom bubble of the late 1990s, highlighting that the highly valued AI companies have actual earnings [1][2] - AI investments in data centers and chips are identified as significant contributors to economic growth, contrasting with the dotcom era where many companies failed after achieving high valuations without sustainable profits [2] - Nvidia has become the world's most valuable company with a market capitalization exceeding $5 trillion, driven by its graphics processing units essential for AI applications [3] Group 2 - OpenAI has secured $1 trillion in AI deals but is projected to generate only $13 billion in annual revenue, indicating a disparity between valuation and revenue generation [4] - Anthropic is operating at a $7 billion revenue run rate and recently announced a substantial $50 billion cloud partnership with Google, showcasing the competitive landscape in AI [4]