At the RAISE Summit in Paris, former Google CEO Eric Schmidt strongly rejected the idea that artificial intelligence is merely a market bubble, calling it a “whole new industrial structure”. He emphasized that the massive demand for AI-specific hardware—especially GPU chips—indicates deep-rooted, sustainable growth, not speculative excess.
🌍 Why It Matters
- Beyond Bubble Fear: While some warn of overcapacity and inflated valuations, Schmidt argued that AI is establishing a new era of industrial infrastructure.
- Hardware as Proof Point: Surging chip demand underscores real-world application needs, facilitating data centers and AI deployment globally.
🔍 Supporting Viewpoints
- Dan Ives from Wedbush calls AI the “fourth industrial revolution playing out”, comparing its scale to the 1995 internet boom—another sign it’s more than hype.
- Siemens has fully embraced industrial AI, capturing decades of manufacturing expertise into AI-powered solutions—suggesting hype is giving way to substance.
- Industry analyst reports point to a growing maturity among enterprises implementing AI—not as marketing gimmicks, but strategic infrastructure initiatives. Business Standard
📌 Summary Table
| Perspective | Viewpoint |
|---|---|
| Eric Schmidt (Ex‑Google) | AI = “whole new industrial structure” backed by chip demand |
| Dan Ives (Wedbush) | AI is the fourth industrial revolution—not another hype cycle |
| Industrial Use Cases | Siemens and others integrate AI into manufacturing infrastructure |
| Enterprise Reality Check | Movement from proofs-of-concept to scalable deployment across sectors |
✅ Final Takeaway
Eric Schmidt’s declaration that **“AI is not hype” but represents a “whole new industrial structure” reflects a confident, long-term perspective on the AI economy. This aligns with views from analysts and industrial leaders who see AI as a foundational infrastructure shift—similar in scale to electrification, the internet, or automation.
AI is repositioning industries, redefining hardware and software ecosystems, and powering the next wave of innovation—not just hype.
