TLDR:
Key Points:
- High spending and low returns in the AI space
- Megacaps like Meta, Google, and Amazon investing heavily in AI infrastructure
In the AI space, there is a concerning time bomb ticking as companies are spending a significant amount on artificial intelligence technology with low returns. Megacaps such as Meta, Google, and Amazon have ramped up their capital expenditure spending to stay ahead in the AI game. Microsoft has spent billions on AI investments, including a $13 billion investment in OpenAI. However, Apple was able to secure a partnership with OpenAI for free just 18 months later, indicating potential warning signs for the broader AI industry. Experts are raising alarms about the growing disparity between the amount of money companies are investing in AI and the returns they are receiving from it.