"For every dollar invested in hardware, we expect 8-to-20 times the amount to be spent on software... While the initial wave of AI investment lays the foundational infrastructure, the next wave is clearly set to capitalise on the burgeoning AI software market."
I'm hoping someone more knowledgeable about capital markets can fill us in here, I'd be curious to see some hard numbers still! Maybe this is what a Bloomberg terminal does...?Regardless, I think this makes a lot of sense; there's no clear scientific consensus on the path forward for these models other than "keep going?", so building out preparatory infrastructure is seen as the clear, safe move. As the common refrain goes: "in a gold rush, sell shovels!"
As a big believer in the upcoming cognitive era of software and society, I would only add a short bit onto the end of that saying: "...until the hydraulic mining cannons[3] come online."
[1] https://www.bain.com/insights/ais-trillion-dollar-opportunit...
[2] https://www.privatebankerinternational.com/comment/is-ai-sof...
What happens when everyone constructs a shovel factory, the shovels become dirt cheap, but there are no buyers?