The current boom in AI investment is already showing signs of strain as firms scramble to build bigger data centers to handle the complexity of large language models.
OpenAI and Microsoft are negotiating a data center project projected to cost $100 billion, illustrating the immense financial commitment required to maintain and advance AI technology.
Alphabet, Microsoft, and Meta Platforms are forecasted to spend $160 billion in capital expenditures, raising concerns about the sustainability of such massive investments in AI infrastructure.
Despite the rush to innovate in generative AI, questions linger about whether revenue from chatbots and applications can keep pace with escalating operational costs.
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