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June 29, 2024, 8:58 a.m.
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According to Goldman Sachs, tech companies are gearing up to invest more than $1 trillion in artificial intelligence (AI). However, there are concerns that the return on investment may take a significant amount of time and could be underwhelming. Some experts even question whether AI will be capable enough to justify its hefty cost. The AI frenzy has led to substantial spending by tech companies, but it may be a while before they see substantial results.

A recent report from Goldman Sachs poses the critical question: "Will this substantial investment ever yield significant benefits?" This massive investment will primarily be allocated to data centers, power grids, and AI chips. However, a scarcity of these vital components could lead to disappointing outcomes for companies. Please note that this article is exclusively available for Business Insider subscribers.



Brief news summary

Tech companies are planning to spend over $1 trillion on artificial intelligence, but according to Goldman Sachs, the return on investment may be slow and underwhelming. Some experts are skeptical that AI will deliver results that justify its high cost. The significant investment will primarily go towards funding data centers, power grids, and AI chips. However, shortages in these key components could lead to disappointing outcomes for companies.
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