AI Investments Soar: Where the Money is Flowing

Current Surge in AI Investments

The total capital expenditure (capex) on AI infrastructure is predicted to skyrocket, reaching $210 billion by 2024. This is a dramatic tenfold increase from 2020, highlighting the rapid evolution and expansion of Generative AI (Gen AI) across various sectors. Generative AI refers to AI systems that can create content, like text, images, or music. This surge in spending is primarily motivated by the adoption of Large Language Models (LLMs), which are sophisticated AI models capable of understanding and generating human-like text.