US Federal Reserve Chair Jerome Powell said on Wednesday that artificial intelligence is unlike the dotcom bubble of the 1990s, as companies leading the AI race are contributing to economic activity.
"This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that," Mr Powell told reporters after the US central bank lowered interest rates by 25 basis points.
He said the dotcom-era firms that went bust were more "ideas rather than companies", while today's AI companies have business models and profits. He also said that investment in AI equipment and infrastructure is a source of growth in economic activity.
Mr Powell did not mention any company by name.
One analysis from JPMorgan released last month showed AI-related capital expenditures contributed to 1.1 per cent of economic growth in the first half this year, passing consumer spending as the driver of expansion. Hyperscalers are also projected to allocate $342 billion to capital expenditures this year, the report said.
Earlier on Wednesday, chip maker Nvidia became the first company in the world to reach a market value of $5 trillion on lofty AI hopes.
Meanwhile, Qualcomm joined the AI data centre race this week when it announced the AI200 and AI250 chips, while also unveiling Saudi tech startup Humain as its first major buyer.
Microsoft topped $4 trillion in market value after it reached a deal with OpenAI on Tuesday that would allow the ChatGPT maker to restructure as a public benefit corporation, or PBC.
Microsoft will hold a stake of $135 billion – or 27 per cent – in the OpenAI Group PBC that would be controlled by the OpenAI Foundation. Microsoft has invested more than $13 billion in OpenAI.
Anthropic, which is a private company, announced a cloud deal with Google last week worth tens of billions of dollars.
Mr Powell said the Fed is also closely monitoring how AI could affect the jobs market.
Apple recently announced that it is laying off 14,000 workers after cuts among other Big Tech companies. Microsoft has made more than 15,000 cuts this year, while Meta and Google have also made layoffs.
"You see a significant number of companies either announcing that they are not going to be doing much hiring or actually doing layoffs, and much of the time they're talking about AI and what it can do," he said.
"So we're watching that very carefully."
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
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THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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SPECS
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Company%20profile
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