AI helped save the chip industry. What happens if it turns out to be a bust?
Briefly

Nvidia has reached a $4 trillion market cap, leading a surge among AI chipmakers like AMD and Huawei. However, signs indicate that AI growth may be slowing, with diminishing improvements in new models. Concerns over these plateauing capabilities have been raised by experts, suggesting that the current data landscape has been largely exhausted. The high costs associated with AI development are also a deterrent, with limited returns failing to justify the investments. Companies like Microsoft and Meta have begun scaling back their AI infrastructure due to these financial pressures.
Some signs suggest that AI growth is stalling, or at least slowing down. New models no longer show significant improvements from scaling up size or the amount of training data.
AI development is also enormously capital intensive. Training the most advanced models requires compute clusters costing billions of dollars. Yet while development costs keep going up, monetary rewards are limited.
Read at Fortune Asia
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