Boom or bubble: How long can the AI investment craze last?
The Peninsula
San Francisco, US: The staggering investments in artificial intelligence keep coming: Last week, AI chip giant Nvidia announced it would invest $100 b...
San Francisco, US: The staggering investments in artificial intelligence keep coming: Last week, AI chip giant Nvidia announced it would invest $100 billion to help OpenAI, the frontrunner in generative AI, build data centers.
How are these enormous sums possible when the returns on investments, at least for now, pale in comparison?
Huge investments
AI-related spending is soaring worldwide, expected to reach approximately $1.5 trillion by 2025, according to US research firm Gartner, and over $2 trillion in 2026 -- nearly 2 percent of global GDP.
Even though tangible returns fall short of the investments going in, the AI revolution appears unstoppable.
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