Boom or bubble: How long can the AI investment craze last?

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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?

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…



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Boom or bubble: How long can the AI investment craze last?


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?

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…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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