3 weeks ago
Dimon Dismisses AI Slowdown Fears, Says Spending Will Pay Off
Jamie Dimon is the boss of a very big bank called JPMorgan Chase.
He talked on TV about artificial intelligence, which uses super-smart computer programs.
Some people worry that companies are spending too much money on AI.
Mr. Dimon says he is not worried about that.
He thinks all that money will be worth it in the end.
Building AI needs things like steel, cement, and big buildings called data centers.
Mr. Dimon says this building work is already helping the country's economy grow.
He also said his bank plans to spend $19.8 billion on technology this year.
But Mr. Dimon did warn about some things.
He said all this spending could make prices go up and that people should watch financial markets carefully.
JPMorgan Chase CEO Jamie Dimon said he believes massive AI infrastructure investments will 'ultimately play out and pay out.'
Dimon estimated AI-related investment accounts for about 1% of US gross domestic product this year and another 1% next year.
JPMorgan plans to increase its technology budget to $19.8 billion this year, with part of the spending earmarked for AI initiatives.
Dimon said AI has reduced jobs in some business areas by as much as 40%, though it will not immediately lower overall operating expenses.
He warned that AI's demand for capital could keep inflation elevated and long-term bond yields higher, and flagged high leverage in financial markets.
- Who
- Jamie Dimon, CEO of JPMorgan Chase, speaking to CNBC's Leslie Picker.
- What
- Dimon dismissed fears of an AI market slowdown and defended massive AI infrastructure spending as worthwhile for the economy and his bank.
- Where
- United States, in an interview with CNBC.
- When
- In an interview aired on Wednesday, with references to the bank's January earnings call and July second-quarter earnings call.
- Why
- Because he believes AI investments will generate long-term returns and are already contributing to US economic growth.
Key facts
- Person
- Jamie Dimon, CEO of JPMorgan Chase
- Company
- JPMorgan Chase
- Technology budget
- $19.8 billion planned for this year
- AI impact on US GDP
- About 1% this year, expected 1% more next year
- Job impact
- Up to 40% job reduction in some business areas
- Interviewer
- CNBC's Leslie Picker
- Economic warning
- AI capital demand could keep inflation elevated and long-term bond yields higher
Quotes
Jamie Dimon
CEO of JPMorgan Chase
“"These people are doing real calculations about what’s needed. They see what it costs to do the frontier models. They see what it costs to do inferencing. The need is going up dramatically."”
financialexpress.com
“"You’ve got to get steel and cement and all these things to build the data centers."”
financialexpress.com
Sources
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