The tech industry is investing heavily in AI infrastructure, but experts doubt its profitability. It is estimated that AI companies would need to generate $600 billion a year to justify the expense. So far, however, only a few giants like OpenAI dominate the market, while many smaller start-ups are struggling.
The high cost of AI hardware, especially Nvidia’s GPUs, is driving investment. At the same time, concerns about an AI bubble are growing. Experts warn that the technology is not yet mature enough to solve complex problems and justify the massive spending.
Despite the risks, many see the transformative potential of AI. The challenge is to create real value for end users and develop profitable applications. While some expect a repeat of previous technology revolutions, others urge caution given the speculative nature of current investments.
Sources: Business Insider, Tom’s Hardware, Sequoia Capital, The Verge