AI Demand Is Surging, Now Comes the Cost of Meeting It
Another wave of corporate reports shows that the boom in artificial intelligence continues to generate returns for investors. At the same time, however, its other side is becoming increasingly apparent. The main problem for the industry remains not a lack of demand, but the cost of meeting it. Companies are ready to sign multibillion-dollar contracts for computing power, but to fulfill them they have to rapidly ramp up capital expenditures, purchase accelerators, and build new data centers.