Federal Reserve Chairman Jerome Powell speaks during a press conference after the Federal Reserve Board’s Federal Open Market Committee meeting on October 29, 2025 in Washington, DC.
Alex Wong | Getty Images
Federal Reserve Chairman Jerome Powell said Wednesday that the artificial intelligence boom is different from the dot-com bubble of the late 1990s.
“This is different in the sense that these companies, these very highly valued companies, are actually making profits and things like that,” Powell said at a news conference after the Fed’s two-day policy meeting.
AI investment in data centers and chips is also a major source of economic growth, he said. During the dot-com era, many companies competed for huge valuations, suffered huge losses and went bankrupt.
Powell did not name specific vendors, but he did not name chip makers. Nvidia With a market capitalization of over $5 trillion, it has emerged as the world’s most valuable company. This rise has been driven by the company’s graphics processing units, which are central to AI models and workloads.
But while Nvidia is generating big profits, acclaimed startups like OpenAI and Anthropic are spending money to develop and expand their services.
OpenAI has racked up $1 trillion in recent AI deals despite annual revenue set at just $13 billion. Anthropic, which has $7 billion in revenue, last week announced an estimated $50 billion in cloud partnerships. google.
Attention: The AI market is not a bubble
