AI Winter: Over Spending, Poor Returns

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AI winter

Telegraph

•

Technology

AI-obsessed bosses are about to get a rude awakening

Summary

Nutrition label

69% Informative

Goldman Sachs has published a report titled: “Gen AI: too much spend, too little benefit?’ If some of their more pessimistic observations come true, we’re all in for a bumpy ride.

The tech giants are predicted to throw $1 trillion at new data centres in the expectation of fulfilling demand for AI services.

But “build and they’ll come” supposes a lot of people will soon arrive.

Spending $1 trillion on data centres will look foolish in a few year’s time when chips are four generations more powerful.

This is capital incineration on a vast scale. Fear of losing out has driven the industry insane. Even for a boom and bust business, this crash may be quite spectacular.

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informal

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English

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not hateful