The spending on generative AI infrastructure is accelerating at a breakneck pace, but it’s quite possible that the "build it and they will come" approach may lead to overcapacity or some serious indigestion. That is the argument from MIT’s Daron Acemoglu and Goldman Sachs Research’s Jim Covello. In a recent Goldman Sachs podcast, the two were skeptical about whether the $1
The spending on generative AI infrastructure is accelerating at a breakneck pace, but it’s quite possible that the "build it and they will come" approach may lead to overcapacity or some serious indigestion.
That is the argument from MIT’s Daron Acemoglu and Goldman Sachs Research’s Jim Covello. In a recent Goldman Sachs podcast, the two were skeptical about whether the $1 trillion expected to be spent on AI capex is going to pay off. And there are some incremental items that point to more skepticism about the AI buildout.