The AI Decade: Comparing the AI Boom to the Internet Boom

Saturday - March 9 2024, 12:07 UTC - 1 year ago

Experts compare the current AI infrastructure boom to the internet boom, but note that the AI industry is showing more steady growth. The current build out phase is expected to last another two years, with potential for strong growth after that. Creating AI applications to leverage data and compute power will be crucial for the industry to reach its full potential, and it is projected to create an economy worth trillions of dollars over the next decade.

The All in Podcast recently had a thought-provoking discussion about the AI decade, comparing the current state of AI technology with the internet boom of the 1990s. Although there are some similarities between the two, experts argue that the current AI infrastructure boom is less of a bubble and more of a steady growth that will last for years to come.

One of the main points of comparison between the two booms is the role of Nvidia, a leading chip manufacturer focused on AI technology. During the internet boom, tech giants like Amazon and Google were experiencing skyrocketing stock prices, despite not having significant earnings. However, Nvidia's current market valuation is not as inflated, indicating a more stable growth trajectory for the company.

Experts also predict that the current build out phase of AI technology will last for another two years, followed by a period of steady growth. TSMC, one of the main chip manufacturers for AI GPUs, is still working on scaling up their production to meet the demand. This indicates that there is still a lot of potential for growth in the AI industry.

But in order for the AI industry to truly take off, there needs to be a focus on creating applications that will leverage the vast amounts of data and compute power that AI data centers can offer. This was also seen during the internet boom, where the full potential of the internet was not realized until applications like e-commerce and social media were created and utilized.

It is estimated that the current buildout of AI infrastructure will cost trillions of dollars. However, this investment is expected to pay off in the long run as the AI industry is projected to create an economy that is worth $100 trillion. This number may seem unrealistic, but considering the massive advancements that have already been made in the field, it is not impossible.

The All in Podcast panelists also discussed the potential length of the AI boom, with some arguing that it will last for at least a decade. Just like how the internet has become an integral part of our lives and economy, AI technology is expected to shape the future in ways we can't even imagine.

In conclusion, the AI decade is just beginning, and while there may be some similarities to the internet boom, it is a unique and promising industry that is expected to drive innovation and economic growth for years to come.