Lee argued that the pricing of AI technologies appears to have gotten ahead of tangible results. “We haven’t really seen the applications that are productivity-enhancing,” he said, stating that much of the current investment has been directed toward building infrastructure.
He drew a parallel to the dot-com era, where extensive fibre-optic cables were laid but remained underutilised until much lower prices prevailed. A similar scenario could unfold in the AI space.
According to Lee, a catalyst for a correction could be the recent geopolitical friction over China’s control of rare earth supplies. He suggested that this development might prompt investors to reconsider their positions. “We might as well take our profits and cut back on some of these multiples until we see some real improvements in the applications,” he said, describing the potential investor sentiment.Also Read: Naukri’s Pawan Goyal sees shift in India’s job market as AI gains attention
Furthermore, Lee stressed the critical importance of China to the global AI ecosystem, cautioning against moves that could isolate the market. He pointed out that a significant portion of AI innovation is emerging directly from China.
Citing warnings from Nvidia’s Jensen Huang, Lee emphasised that American technology companies cannot afford to abandon the Chinese marketplace, as approximately half of the world’s AI innovators and researchers are located there.
For the entire interview, watch the accompanying video
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