According to The Wall Street Journal, massive data-centre spending in recent weeks has heightened concerns that an artificial intelligence bubble is forming. AMD’s stock surged nearly 60% in October but has fallen roughly 20% so far this month.

“I’m not worried about an AI bubble,” AMD CEO Lisa Su said in an interview. “I do think the people who have that view are being a little short-sighted. They’re not really seeing the power of the technology.”

Su argued that those willing to place “big and bold bets” are reaping the rewards — including soaring stock prices and growing market share — and that tech companies are only at the very beginning of exploring AI applications.

modezone.com notes that for many large tech companies, including AMD, making significant and bold bets has involved circular financing arrangements. For example, to secure a chip-supply deal with OpenAI, Lisa Su offered the ChatGPT maker warrants that would allow it to buy up to 10% of AMD’s shares at a steep discount. Such transactions have fueled concerns that unsustainable financing structures are underpinning the AI boom.

“This is not the time to stand on the sidelines and worry, ‘Hey, am I over-investing?’” she said. “In my view, under-investing is far more dangerous than over-investing.”

The above content is compiled by ModeZone, a fashion and entertainment magazine.