Augusto Marietti in an interview with Business Insider stated that the growing demand for energy may ultimately slow down the investment frenzy in capital expenditure (i.e. capex). He added, however, that the artificial intelligence infrastructure being built now will be needed in the future. He compared it to the construction of railways in the USA.
The AI bubble may burst, but as Marietti told Business Insider, he thinks it will still be worth it. As he explained, artificial intelligence companies will ultimately need the huge infrastructure projects to which they now devote so much of their resources.
There will be no energy for AI
— We live in a new era of builders — this is a unique moment in which we will probably spend even more capital and investment resources to enable the era of AI, and that is necessary, Marietti told Business Insider.
Marietti stated that energy issues are likely to become a major obstacle that will slow down AI development. Business Insider has previously documented how desperate AI companies are for energy to power their massive data centers — so much so that some are building their own, independent power sources.
— We don't have enough energy to power all the GPUs [procesory graficzne; dziś niezbędne w rozwoju AI — red.] next year – he said.
But Wall Street is worried about the sustainability of the capital spending spree among top AI startups and tech giants, prompting more talk of a potential bubble. Business Insider's analysis showed that Amazon, Microsoft, Meta and Google may spend a total of approximately $320 billion. on capex – mainly for AI-related needs.
OpenAI CEO Sam Altman said in August that he agreed that AI may be in a bubble right now — echoing the warnings of others that such large spending cannot be sustained indefinitely. Some economists say that capital spending is now so high that it largely sustains the entire U.S. economy.
See also: OpenAI has the “Midas touch” today. When Altman names a partner, the odds go up
AI like railway construction in the USA
Like Altman and the other Mariettis he compared current expenses to the construction of railways in the United States in the 19th century. AI optimists say that artificial intelligence – like railways – will fundamentally transform the economy, so huge investments are needed to prepare the ground for what's to come.
— Some railway lines were built prematurely, but eventually all were used – he said. – I think that in the case of AI we also build in advance – and at some point something will break down for a while, but ultimately we will still need this infrastructure that we are creating now – he added.
OpenAI CEO Greg Brockman has suggested that everyone will soon want their own graphics processing unit (GPU) — which would mean demand on a scale that would require massive expansion by companies like his.
Marietti stated that even a “moment of breakdown” will not stop what is already on its way. — After all this, we will still use the infrastructure we are building, he said. “We're still using the railways we built 150 years ago — ahead of time,” he added.
The above text is a translation from American edition of Business Insider
