AI is not in a bubble, says VC founder. Why he says it's different to the dotcom boom

Whether or not markets are getting ahead of themselves over artificial intelligence is a hot topic for investors right now.

Last week, billionaire investor Ray Dalio said his personal “bubble indicator” was relatively high, while Federal Reserve Chair Jerome Powell described the AI boom as “different” from the dotcom bubble.

For Magnus Grimeland, founder of Singapore-based venture capital firm Antler, it’s clear the market is not overheating. “I definitely don’t think we’re in a bubble,” he told CNBC’s “Beyond the Valley” podcast, listing several reasons.

The speed at which AI is being adopted by businesses is notable compared to other tech shifts, Grimeland said, such as the move from physical servers to cloud computing, which he said took a decade. Added to this, AI is “top of the agenda” for leaders today, he said, whether they’re running a healthcare provider in India or a U.S. Fortune 500 company.

“There’s a willingness to invest into using that technology … and that’s happened immediately,” Grimeland said.