JPMorgan CEO Dimon Questions AI Investment Returns, Bullish on SpaceX Space Data Centers

① JPMorgan CEO Dimon questions the return timeline of the AI investment boom, saying it will not fully materialize as expected; Goldman Sachs CEO Solomon also believes AI development will not be smooth sailing; ② However, Dimon is bullish on the SpaceX space data center project, saying its energy and cooling costs are low and stable. Cailian Press, July 22 (Editor Huang Junzhi) — Jamie Dimon, CEO of JPMorgan Chase, the largest U.S. commercial bank and known as the "big brother of Wall Street," is skeptical about whether the investment boom in artificial intelligence (AI) can deliver as investors hope.

However, he is very bullish on a more extraordinary project in the course of AI development: SpaceX's ambition to build data centers in space.

Speaking in a latest podcast interview, Dimon said, "As for AI itself, the amount of money being invested is enormous. Will it ultimately pay off? Perhaps, just like the internet. But will it pay off in the way and on the timeline you expect? Absolutely not."

When asked whether he expected the AI boom to produce a perfect outcome, Dimon said: "Not perfect, but it could be a good outcome."

Dimon also added that companies may rein in spending on generative AI and seek cheaper ways to use the technology, which "will cause some problems." Recently, the release of another highly cost-effective Chinese AI model, Kimi K3, caused a stir in the U.S. tech community.

It was the same story elsewhere. Goldman Sachs CEO David Solomon, speaking about the AI boom on the bank's earnings call last week, also said: "AI development will not be smooth sailing; there will always be bumps and times when adjustments are needed."

In the podcast interview, Dimon described rocket maker SpaceX — one of the core companies in this investment boom — as "extraordinary."

He praised the company's satellite internet business and defended the feasibility of one of its more forward-looking AI initiatives — space data centers.

"I've seen some actual operating data on space data centers... if they operate normally, that means energy costs are very low, cooling costs are very low, and it is very stable," Dimon said.

JPMorgan last week reported the highest quarterly profit in U.S. banking history, with the main earnings coming from AI-related transactions and stock trading. The bank earned hundreds of millions of dollars in fees by advising on SpaceX's massive IPO and other giant AI-related deals.

On June 12, JPMorgan also held a celebration at its headquarters in Midtown Manhattan for SpaceX's post-listing, with more than 100 employees and executives attending. SpaceX shares rose in the first three days after listing, then pulled back, and are currently down more than 5% from the issue price.

When asked what he thought of SpaceX's listing price, Dimon said it was "a bit much." During the IPO process, SpaceX broke Wall Street's standard process of setting a price range and directly set the issue price at $135 per share.

"They say there is a price to pay for this, and this is a different approach," Dimon said.