Artificial intelligence may seem a new concept, but it is fascinated by technicians, inventors and a science fiction for decades.
Mathematics and computer scientist Alan Torring thought AI computers in the fifties, and Rand Corp. Building the first Amnesty International program in 1956. Isaac Asimov wrote “I, Robot” in 1950, and the movie director James Cameron was released in 1984.
However, it was not until the Openai Chatgpt was launched in November 2022 that artificial intelligence was prevalent. Chatgpt was the fastest application to reach one million users, and it began to embrace it widely in a torrent of artificial intelligence research and development, including some of the largest companies on this planet.
Definition platforms: 17.01 billion dollars.
alphabet: 22.4 billion dollars.
Microsoft: 24.2 billion dollars (17.1 billion dollars, with the exception of financial rental contracts).
Amazon: 31.4 billion dollars. Source: SEC Company files.
The money that is spent is undeniable, and the CEO believes it is necessary, including Sam Altman from Openai, who recently said:
You should expect Openaii to spend trillion dollars.
The risks are high and have caught the attention of investors, including billionaire in Wall Street David Inhurne. Einhorn is the wallet manager behind Greenlight Capital, a hedge box with $ 2.3 billion of management assets.
Einhorn recently commented on the spending of artificial intelligence, and given more than 30 years in Wall Street, investors may want to think about his opinion.
David Einhurn threw a flagrant warning to the last boom in Ai English.boomberg & Sol; Getty Images
Companies are scheduled to spend between $ 500 billion and $ 1 trillion annually on nuts and browsers needed to support artificial intelligence.
A large part of this funds is spent on data centers equipped with the next generation graphics processing unit (GPU) from NVIDIA, which is more suitable for dealing with heavy work burden associated with training and operation AI Chatbots and AIC programs.
These programs are intense for data, and require great promotions for network servers and the keys that link them. As a result, spending was a blessing not only for NVIDIA, which controls 90 % of the GPU AI market, but servers, such as Dell and SuperMicro, and memory potatoes, such as Micro, and storage, including seagate.
Today’s work reminds us of the flood of spending information technology in the late 1990s, at the dawn of the Internet.
This is concerned for Einhorn, who described the huge size of the dollar designated for Amnesty International with one word: “extremist”.
“The numbers that are being extracted are so extreme that it is really difficult to understand,” Einhorn said in the simplification of the Asset Management Committee.
Companies that convert the budget to artificial intelligence may be great, but the logical basis that companies offer in expenditures recently was more “because we have” a plan to invest in carefully invest.
Einhorn believes that “there is a reasonable opportunity for a huge amount of capital destruction during this session.”
This is an abbreviation of many things that people invest in it.
The risk of companies that burn money on artificial intelligence projects does not avoid appetite for spending yet. Recently, there has been a wave of prominent huge deals that involve large money from the best players.
Hypermps does not seem ready to slow down their spending on data centers as well. Mark Zuckerberg, CEO of Meta Platform, aims to invest between 64 to $ 72 billion this year, and fears that they will be “adequately aggressive”.
It is expected that the CENTER DATA DATA DATA DATA AI Servant Market will grow by 38 % in an annual compound compound from 2024 to 2029, reaching more than $ 580 billion, or 5X from 2024 billion dollars.
If you combine all spending on artificial intelligence, including developing AIC AIC applications that can one day replace many jobs or increase the number of jobs, the amount that was spent this year represents $ 1.5 trillion in 2025, According to Gartner.
Next year, Gartner says the number will be higher:
By looking at the year 2026, global artificial intelligence spending is expected to reach the top $ 2 trillion, which leads to a large extent by integrating artificial intelligence into products such as smartphones and computers, as well as infrastructure.
This is not the first time that huge companies have spent to benefit from technological innovation (and will not be the last).
More technology:
During the internet boom, companies stumbled on themselves to invest in the equipment needed to build the spine of the Internet, causing the Intel, CISCO shares to increase and many others.
“The real investment of information technology was particularly strong between 1995 and 2000, with an average of 24 percent annually and an annual average of more than 3/4 points to GDP growth,” according to Federal Reserve Bank in San Francisco. “In 1990, the total nominal investment in information technology commodities amounted to only $ 131.5 billion, a little lower than a third of the private investment of equipment and programs (E&S) non -residential. By 2000, IT investment increased to 401.6 billion dollars.”
This spending has fueled a lot of growth, but it also created a bubble, when it exploded, many companies went bankrupt.
“In 2001, information technology investment was severely contracted, with the real investment of information technology decreased by 11 percent and nominal investment decreased about 17 percent,” according to Francisco Federal Reserve.
The stock market decreased with the collapse of spending.
2002: -23.4 %
2001: -13 %
2000: -10.1 %
Even the shares that survived the decline took years and sometimes over a decade to recover to the highest levels on the Internet. For example, CISCO did not reach its peak in March 2000 approximately $ 80, and it took Intel until 2014 to become Eclipse Roy Peak.
Whether we see something similar this time, it is not certain, but there is a lot of speculation, and Einhorn is not very enthusiastic about economic expectations.
“I am a little more than the opinion that we went to or we were in a stagnation,” Einhurn warned.
