"Hyperscalers are buying billions of dollars' worth of servers and trying to build the foundation for the next super cycle of intelligence. There are consumers who are happily taking on these chat clients, creating wonderfully inventive cat videos and purchasing those devices, the mobile phones, the PCs, the tablets that are all now AI-enabled. There's the regular enterprise consumer or the enterprise buyer, whether that's the CIO or the board-appointed special group who are saying, 'Get me something AI'."
"'We're starting to see the end of the investment line. We had a thousand flowers blooming, now it's time to prune the garden. We are getting to the point where we go from 'that was a great idea' to 'where's my revenue?' That's a normal part of any new technology,' he said."
"We are getting to the point where we go from 'that was a great idea' to 'where's my revenue?'"
Global AI investment is forecast to reach $2.52 trillion in the current year, a 44 percent increase from $1.76 trillion, and is expected to approach $4.7 trillion by 2029. Cloud hyperscalers and enterprise software vendors are projected to shoulder most of the near-term expenditure, with enterprises likely to pay more over the longer term. Many organizations are expected to adopt vendor-provided AI agents rather than build bespoke AI platforms. Enterprise AI initiatives are facing high failure rates near 90 percent, prompting a shift from broad experimentation toward pruning projects and demanding revenue-generating outcomes.
Read at Theregister
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