Federal Reserve Chair Jerome Powell said Wednesday that the current artificial intelligence boom stands apart from the dotcom bubble of the late 1990s, calling AI investments a major new source of economic growth.

“This is different in the sense that these companies — the ones that are so highly valued — actually have earnings and stuff like that,” Powell said during a press conference following the Fed’s two-day policy meeting.

He added that massive investments in AI-related data centers and chips are fueling real economic expansion, contrasting with the dotcom era when sky-high valuations often preceded widespread bankruptcies.

Powell did not name specific companies, but chipmaker Nvidia — now valued at more than $5 trillion — has become the world’s most valuable firm, powered by booming demand for its AI-focused graphics processors.

Still, while Nvidia is generating record profits, AI startups such as OpenAI and Anthropic continue to burn through cash as they expand their platforms and pursue growth.