Ed note: Gemini almost did it here .. but it is funny what it did with the phones. and two closed signs.

Nokia the maker of legendary phones such as the Nokia N900 and the Nokia 3310 is now peddling shovels for the AI Goldrush and trying to use some legendary logic. AI data centers would be built two times faster if there were not supply chain issues

The tech industry would build data centers twice as fast without the supply constraints they face, the CEO of Nokia told CNBC, underscoring continued demand for AI even as top executives debate slowing down the pace of development.

No shit Sherlock, you can build faster when you have the parts. I feel like this is something else though, I think Nokia realized they were late for the AI party and wishes they could sell some data centers.

“I don’t think you can say in any manner we’re overbuilding today because reality is that if we could build 2x faster, our customers could build 2x faster, they probably would,” Justin Hotard told CNBC’s “The Tech Download” podcast.

The thing is right now with the amount of CAPEX being built out we have no idea of the true capacity that has been built out. You have every company on earth who knows how to turn on a computer building out with data centers and the thing about AI is NO ONE truly knows how much capacity is needed. Because if ChatGPT or Gemini break through with efficiency that saves half of the speed needed these companies are not going to burn through millions of dollars of computing when they can save half.

“So that gives me confidence that we’re still in the early days” of the AI buildout, Hotard added. Shortages of key memory chips and energy are among the supply constraints facing the sector. Nokia, one of the world’s biggest telecommunications equipment makers, has pivoted to become a key player within the AI infrastructure space. It sells the technology required to connect racks of chips within data centers as well as technology that interconnects data centers across different locations.

Hey Hotard go read about 1849 and you will understand that the amount of shovels had no connection to the amount of gold that was dug from the ground. This is just posturing to make it sound like the AI gold rush is still going on. But Mr Hotard should make another n900 for this generation that has AI on board rather than blow more money on AI that we do not know where it will be in a year.

Nokia’s growing role as a “picks and shovels” player in the AI boom appears to have won over investors, with the stock up around 130% over the past year .But there’s been continued debate over whether the industry is building data centers too fast and whether demand will be there to sustain it. Investments in the AI buildout from data centers to chips and related infrastructure will total $10.3 trillion from 2025 to 2032 — an average of 3.63% of U.S. gross domestic product per year, according to research presented at the Brookings Papers on Economic Activity.

The funny thing right now how many companies are overspent on CAPEX build out (all of them) is going to have some horrifying detrimental actions when the bill comes due. Right now are are all focused on Magic Farts and Butterflies of AI on the market and people are buying into it like it is the best thing since the Knife that sliced bread. But sooner or later the bill is going to come due and it will make the school loan debt crisis look like someone was missing school lunch money.

Hotard said that demand for AI is not just predicated on frontier labs like Anthropic and OpenAI releasing new models. “I think the reality is that we’re even where we are today is so early in the deployment, and the power of these models is so massive that there’s a lot of there’s a lot of demand to run in just deploying,” Hotard said. “Even if we didn’t have another frontier model released in the next three years, we could probably make tremendous progress just deploying the technology that’s there today.”

Hotard translation here: “please keep buying out AI shovels and don’t worry we will make sure to bill you triple.

Attributions from:
CNBC – Nokia CEO says data centers would be built ‘2x faster’ without supply constraints