TECH - Goldman Sachs Casts Doubt On 'Exceptionally Expensive' AI Investments By Tech Companies | Benzinga
A report from Goldman Sachs has raised doubts about the potential return on investments in artificial intelligence (AI) by tech companies.
What Happened: According to the report, companies are projected to invest over $1 trillion in AI. However, Goldman Sachs’ report expresses apprehension about the returns on this colossal investment.
The report underscores the high costs associated with AI technology, including data centers, power grids, and AI chips, and questions whether these costs can be justified by the returns.
“AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn’t designed to do,” Jim Covello, the head of global equity research at Goldman Sachs, said in the report.
Covello also criticized the tech industry’s assumption that AI costs will significantly decline over time. He mentioned Google’s decision to reduce its AI usage in search after ...