"Hedge fund tycoon Ken Griffin has a blunt message for anyone expecting artificial intelligence to instantly rewrite the global economy: the hype is real - and it's there to justify enormous spending. Speaking at the World Economic Forum in Davos on Wednesday, the Citadel CEO said the AI boom is being fueled as much by narrative as by real productivity gains."
"Griffin said that data center spending in the US is estimated to top $500 billion this year. Bank of America previously estimated that Microsoft, Amazon, Google, and Meta - who are leading the data center construction boom - will spend a combined $385 billion annually on AI infrastructure between 2025 and 2028. "You're not going to generate this kind of spend unless you're going to make a promise you're going to profoundly change the world," Griffin said."
AI hype is driving enormous infrastructure spending while measured productivity gains lag behind. US data center spending is estimated to top $500 billion this year. Major cloud and tech firms are projected to spend about $385 billion annually on AI infrastructure between 2025 and 2028. Narrative and expectations have helped mobilize that capital. Generative AI tools have empowered CTOs in many organizations but still fail rigorous depth tests and often do not deliver consistent deep productivity improvements. Broad predictions of rapid job displacement for entry-level white-collar roles face skepticism given current system limitations.
Read at Business Insider
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