Sweetened It Spending Forecast Is Not Precisely A GenAI Boom
The Next Platform, Tuesday, April 23rd, 2024
Here is a paradox for you: Spending on infrastructure to support generative AI is apparently booming, as clearly evidenced by the skyrocketing revenues and profits of Nvidia.
But spending on datacenter hardware is not changing all that much, and where spending is now forecast to be higher, it is in services and has more to do with offloading other kinds of work than finding GenAI hired guns to do the heavy lifting.
The exceptions to this, of course, are the hyperscalers and cloud builders, who very clearly shelling out tens of billions of dollars each quarter to build massive AI training and now inference systems.