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A Artificial intelligence boom that Sam Altman helped to ignite with Chat At the end of 2022, it was even difficult to make it.
Startups with a little more than on the deck are raising hundreds of millions. The estimates became “insane”. Capital pursues the “core of truth” at a feverish speed.
A Openai The CEO still believes that the long-term public growth will exceed the foam, and he is ready to continue the cost of achieving this.
“We are in the phase when investors are overall about the II? My opinion so,” he said at a recent dinner with journalists. “Is the most important thing that happened in a very long time? My opinion too.”
He repeated the word – bubble“Three times in 15 seconds, then half joking,” I’m sure someone will write a sensational title about it. I would like you not, but it’s okay. “
While Altman warned that the estimates are now out of control, he is ready to post a greater infrastructure.
“You must expect Openai to spend trillion dollars on the construction of the data center in a not very distant future,” Altman said. “And you have to expect a bunch of economists who squeeze their hands, saying,” It’s so crazy, it’s so reckless, “and we’ll just:” Do you know what? Let’s do our business. “
Openai already looks further Microsoft Cloud container Azure and shopping for more.
The company has signed a deal Google Cloud This spring, and, according to Altman, Openai is “outside of computing” what any hyperaler can offer.
“You must expect that we will take as much deduction as we can,” he added. “Our rate is that our demand will continue to grow, our training needs will continue, and we will spend more aggressively than any company, which if you have spent something ahead, because we just have this very deep faith in what we see.”
It’s not just Openai. All Megacaps try to keep up.
In the latest earnings, the largest Tech names, all raised capital costs to keep up with AI demand: Microsoft is now aimed at $ 120 billion for a full capital expense, Amazon heads $ 100 billion, Alphabet raised the forecast up to $ 85 billion and Meta raised the high end of the Capex range to $ 72 billion.
Dan -Ius Wedbush said on Monday at the CNBC Final Fixed CNBC that in recent months, the AI -to -40% demand for AI infrastructure, calling Capex Supting for the sector, has grown.
Ives recognized “some foam” in some parts of the market, but said that the AI revolution with autonomous is just starting to play, and we are in “the second engineering game of nine engineering.”
“The actual impact on the average and long term is actually underestimated,” he said.
Rob Row -Siti, speaking on Monday on CNBC’s “Money”, pushed up to comparison between today’s AI BOOM and Dotcom Bubble.
“Then you had many exceeded situations. You didn’t have many companies that had a profit,” Row said. “Here you are talking about companies that have a very durable profit, a very strong cash flow, and they finance a large growth due to this monetary flow. So, in many ways, it’s a little different.”
He added that the current wave of investment AI is due to structural shifts in the world economy, in particular the rapid growth of digital services, which now make up a large proportion of world exports. In addition, unlike the Dotcom late 90s cycle, today companies finance their costs on infrastructure with a strong cash flow rather than relying on debt.
However, the concern of overheating occurs.
Co -founder Alibaba Joe Tai He pointed to the anxious signs in the AI sector long before the hypers raised Capex’s annual leadership during the latest profits.
In March, he warned of a brewing bubble in the US
Speaking at the HSBC Investment Summit in Hong Kong, Tsai said he was surprised at the cost of the data center. TSAI asked whether hundreds of billion costs are needed, and the concerns are marked by companies that start building data centers “specification” without obvious demand.
Altman, for its part, sees these cycles as part of the natural rhythm of technological progress.
As a result of the collapse of Dotcom, the results of the companies were destroyed, but still gave rise to modern internet. He hopes that the II will go the same way: some loud squeezes and then a strong transformation.
“I think some investors are likely to be very burned here and it sucks. And I don’t want to minimize it,” he said. “But in general, I believe that … the value created by AI for society will be huge.”
See: As reported
