Artificial intelligence and its popularization have unleashed a race to see which big tech company offers a better iteration of it. To serve this purpose, large sums of money are being invested with the aim of building infrastructures that support the growing demand. However, it is still not entirely clear whether the benefits justify this excessive spending.
David Cahn, an analyst at Sequoia Capital, warned last September that there is currently a significant discrepancy between the revenue expectations that AI would bring and its actual benefits. In this case, he refers to Nvidia, the renowned graphics card manufacturer.
Undoubtedly, Nvidia is being one of the great beneficiaries of the artificial intelligence fever. The company led by Jessen Huang has seen how the demand for its powerful chips has resulted in a 262% increase in its revenues, reaching 26.044 billion dollars.
According to TechSpot, it is expected that the company will generate $150 billion in revenue by the fourth quarter of 2024. Implicitly, this implies that its expenses amount to $300 billion, which means that it would have to generate over $600 billion just to amortize its investment.
The truth is that calculating the long-term impact that artificial intelligence will have remains a difficult mystery to solve. Giants like Google, Microsoft, or Apple have shown great confidence in the potential that AI has to improve their earnings. For now, we will have to wait for the frenzy to pass to see which products and services will remain standing.
