Analyst Firm Predicts Cold Shower for Generative AI in 2024
An analyst firm, CCS Insight, based in London, is predicting a daunting future for generative AI in 2024. In an interview with CNBC, Ben Wood, the chief analyst of CCS Insight, expressed his belief that the current hype surrounding generative AI will diminish as the practical challenges of cost, risk, and complexity come to the forefront.
Wood emphasized the immense cost required for deploying and sustaining generative AI, making it a barrier for many organizations, despite larger companies such as Google and Meta being able to afford it. These comments come at a time when concerns about a global chip shortage are on the rise. The shortage has triggered intense competition among industry giants, such as Elon Musk and Chinese tech titans, for Nvidia’s semiconductor chips.
To meet the booming demand, Nvidia intends to triple the production of its $40,000 processor chips next year. Furthermore, OpenAI, a leading AI company, is exploring the possibility of developing its own chips to mitigate the reliance on external suppliers.
It is estimated that OpenAI currently spends up to $700,000 a day on computing power to sustain its ChatGPT platform, highlighting the substantial costs involved.
CCS Insight has not provided further comments on its prediction at this time.
Source: AI industry could be in for a ‘cold shower’ next year: analyst
