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Silicon Valley’s Trillion-Dollar Leap of Faith: Tech companies are spending as if AI’s transformative uses are a foregone conclusion. They’re not.
Tech companies are spending as if AI’s transformative uses are a foregone conclusion. They’re not.
Over the past few weeks, analysts and investors at some of the world’s most influential financial institutions—including Goldman Sachs, Sequoia Capital, Moody’s, and Barclays—have issued reports that raise doubts about whether the enormous investments in generative AI will be profitable. Even if generative AI has not yet seriously changed many people’s lives, proponents say that as the technology improves, it will solve long-standing scientific problems, unlock huge productivity boosts, and create entirely new sectors of the economy. Amazon, Google, Meta, and Microsoft burning hundreds of billions of dollars to build data centers means future tech start-ups might be able to use those computing resources at lower costs.
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