AI compute is the new oil—and needs a new market
ARTIFICIAL INTELLIGENCE is changing many things about the modern world. Language is no exception. The word “compute”, for instance, used to be regarded as a verb. Today even grammar pedants grudgingly accept it as a noun, referring to the processing power generated by advanced chips. This new, non-verbal compute is the fuel of a technological revolution.
Demand for processing oomph has surged, and it is in short supply. About $360bn was spent on AI compute last year around the world, according to Boston Consulting Group, about 50% more than on copper. By 2030 BCG expects $2.3trn in transactions, roughly the size of the global trade in crude oil today.
For all its impressive size, however, the compute market lacks sophistication. The “hyperscalers” (a still somewhat arcane piece of IT jargon for a handful of giant cloud-computing providers including Amazon, Google and Microsoft) and frontier AI labs (such as Anthropic and...
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