Artificial Intelligence

Bloomberg

• Even as big tech companies and some leading AI startups plan to spend billions, if not trillions, of dollars on chips, data centers, electricity and talent, the debate on Wall Street is raging over whether the financial rewards will offset these vast costs.
• The payoff—if it comes—may be a long time away. The industry’s success depends on offering more advanced software, but that means having to educate businesses on what the tech can do in order to convince them to buy at scale.
• It’s not just money that could derail AI’s future, but physical constraints. AI data centers already face long queues to get connected to the grid and lawmakers are beginning to scrutinize their impact on power prices and water resources.
• But high-profile investors say not to underestimate the technology’s impact. Watch Oaktree Capital Management co-founder Howard Marks chat with Bloomberg TV about his approach.