7min chapter

Decoder with Nilay Patel cover image

AI is a money pit — here’s why investors don’t mind

Decoder with Nilay Patel

CHAPTER

Surge in AI Investment: Trends and Implications

This chapter explores the dramatic rise in AI spending across various sectors, moving from $2.3 billion to $13.8 billion, highlighting the shift from infrastructure to application development. It emphasizes the challenges of achieving ROI and the growing potential of foundation models, while also identifying thriving startups and sectors influenced by AI. Additionally, the chapter touches on changing preferences among companies for AI providers and the positive impacts on early adopters.

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