Tech investor Paul Wick says 'doom and gloom' over AI is overblown

Dot-com echoes, key differences

Wick, chief investor at Seligman Investments, said the AI startup boom and data-center spending share features with the dot-com period. The investment group, part of Columbia Threadneedle Investments, manages more than $40 billion across a hedge fund, mutual fund and venture capital arm.

He also noted that energy prices and interest rates have jumped this year, as they did during that earlier period. But Wick said the current market has not seen the same IPO rush or a frenetic stretch of stocks rising fivefold or tenfold in a day.

By late 2000, a slowdown in IT spending was being forecast for 2001. In contrast, enterprise spending on AI remains strong, and recent technology earnings have been robust, Wick said.

Wick responds to AI doubts

Business Insider asked Wick about Michael Burry’s warnings on AI. Burry, known as “The Big Short” investor, has raised concerns about aggressive accounting, circular financing, hidden debt and investment in depreciating assets such as microchips. Burry has defended his track record, citing predictions he says were correct and sharing charts about the timing of his market calls.

Trade careers draw demand

Wick said a computer science degree used to be a ticket to success. He suggested that learning a trade may be a better option today. He pointed to booming demand for electricians and HVAC technicians, saying they can earn an incredibly good living without attending a four-year college.