11th July 2024
My main concern is that the substantial cost to develop and run Al technology means that Al applications must solve extremely complex and important problems for enterprises to earn an appropriate return on investment.
We estimate that the Al infrastructure buildout will cost over $1tn in the next several years alone, which includes spending on data centers, utilities, and applications. So, the crucial question is: What $1tn problem will Al solve? Replacing low-wage jobs with tremendously costly technology is basically the polar opposite of the prior technology transitions I've witnessed in my thirty years of closely following the tech industry.
— Jim Covello, Goldman Sachs
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