Nick Clegg

Former Meta executive Nick Clegg suggests the AI sector may be headed for a market correction due to “unbelievable, crazy valuations” and the rapid pace of investment. He questions whether current valuations accurately reflect the underlying potential, highlighting the need for hyperscalers to realize returns on massive infrastructure investments. While acknowledging AI’s potential, Clegg expresses skepticism about “artificial superintelligence,” advocating for a more measured approach and noting that the adoption of AI may be slower than technologists predict.

In a CNBC interview, Sir Nick Clegg cautioned against the growing entanglement of technology and politics, advocating for a “respectful distance” to prevent stifling innovation and eroding public trust. He highlighted the complexities of data security and algorithmic control, using the U.S. government’s approach to TikTok as an example. Clegg warned against data localization trends and the potential balkanization of the internet, emphasizing the U.S.-China relationship as a key risk. He stressed the need for international cooperation to preserve the open and interconnected nature of the internet.