"By the end of this year, the tech industry will have invested about $717bon over three years into large language model (LLM) AI and the infrastructure needed to support it. While estimates for next year vary, it is possible that industry will invest a comparable amount. This suggests that the industry is receiving more capital than has been invested in the rest of the tech industry since the modern era began in 1956,"
"One issue that remains unaddressed is that even if the technology delivers on its promise, many, if not most of the current players are bound to fail. The knock-on effects of these failures may be catastrophic, especially for equity investors. Depending on how you count, there are either five or six essentially identical LLM development programs in AI from Big Tech players in the US: Google, Amazon, Meta, xAi, and Microsoft/OpenAI, who may be either allies or competitors."
About $717 billion has been invested over three years into large language model (LLM) AI and the infrastructure needed to support it, with possible comparable investment next year. That capital influx may exceed all prior tech industry investment since 1956. The concentration of development across five or six major US Big Tech programs—Google, Amazon, Meta, xAi, and Microsoft/OpenAI—creates intense competition for global dominance. Many current players are likely to fail even if the technology succeeds, producing potentially catastrophic knock-on effects for equity investors. Additional participants include Nvidia, Apple, Anthropic, and numerous smaller firms. Corporate customers invested $91.9 billion in 2022, excluding other sources.
Read at www.theguardian.com
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