John-David Lovelock attributed the increased figure for IT spending in 2024 to repricing in communication services, which accounts for the majority of the bump in dollars.
Investments in generative AI are impacting spending, with datacenter systems seeing growth from 4% to 10% in 2024, primarily due to planning for GenAI initiatives.
AI servers are projected to account for close to 60% of hyperscalers' total server spending in 2024, reflecting a 'gold rush' spending trend by service providers supporting large-scale GenAI projects.
Lovelock highlighted risks in AI investments, stating that tech giants building specific AI servers may face revenue shortfalls if AI model creation and inferencing activities do not meet expectations.
#it-spending-forecast #generative-ai-investments #communication-services-repricing #datacenter-systems-growth #risks-in-ai-investments
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