Investors May Need to Hedge Their AI Holdings, AI Professor Says
The world is experiencing an artificial intelligence boom, but not everyone is benefiting equally. Companies that build AI models often struggle to make profits, while hardware suppliers like Nvidia are reaping huge rewards. Nvidia’s market value recently surpassed $5 trillion, showing that the real gains are going to those providing the chips, data centers, and infrastructure that make AI possible. However, Prof. Amit Joshi at IMD Business School says there is a growing risk that the world may be overinvesting in the wrong kind of AI infrastructure. Building and powering the massive systems required for large language models, such as…