The world's business leaders are predicting some AI 'blow-ups'

"Some of the world's most powerful and well-connected leaders converged in Manhattan on Wednesday, and one subject dominated the room: artificial intelligence. Three years after ChatGPT launched, revolutionizing the way the world thinks about and uses AI, the arms race is bigger than ever - perhaps too big. At the annual New York Times DealBook Summit, leaders from BlackRock's Larry Fink to Lai Ching-te, the President of Taiwan, were asked about the state of the AI industry and the potential for an AI bubble, a hot topic in Silicon Valley and on Wall Street over the past few months."

"Tech giants like Meta, Alphabet, and Microsoft are spending tens of billions of dollars in capital expenditures - largely AI infrastructure - this year. So far, 49 US AI startups have raised at least $100 million this year, TechCrunch reported in November."

""There are going to be some huge winners and huge failures," Fink said to DealBook founder Andrew Ross Sorkin. "I'm not here to suggest there's not going to be some headline blow-ups.""

Artificial intelligence dominated attention at the DealBook Summit in Manhattan three years after ChatGPT's launch. Tech giants are committing tens of billions to AI infrastructure while dozens of U.S. startups have secured large funding rounds. Large capital deployment has intensified an AI arms race and sparked worries about an investment bubble. Significant variability in outcomes is expected, with both major winners and headline failures likely and measurable casualties anticipated. Hyperscaler capacity constraints and the substantial capital requirements for building and operating AI data centers increase industry risk.

Read at Business Insider