Why enterprise AI is forcing a rethink in cost control
Generative AI has moved quickly from experimentation into early production use in many enterprises. However, very few can confidently forecast what it’s going to cost them in six months.
For a technology that has consumed so much board-level attention and capital, that reflects a lack of certainty, and one that some technology leaders may privately recognize as true of their own organizations.
The spend is real and the direction is clear, but the number at the end of the year can remain genuinely uncertain.
To capture a glimmer of the confidence driving the infrastructure race, Amazon’s CEO has indicated it expects to spend heavily on IT infrastructure to support AI, with an estimated $200 billion in AI capital spending, arguing it is “not going to be conservative” in how it invests in the tech.
In practice, what makes AI different from the infrastructure investments that came before it is...
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