Goldman Sachs Exchanges
AI Exchanges: Will falling costs drive new opportunities?
Feb 4, 2025
Kim Posnett, Global co-head of Investment Banking at Goldman Sachs, shares insights on the impact of low-cost AI models on tech spending and deal-making. The conversation delves into how these advancements may encourage greater AI adoption, even amidst market volatility. They explore the evolving role of AI agents and the shift towards new data economies. Posnett highlights the balance between reduced costs and the need for robust infrastructure, painting an optimistic picture of AI's future in various sectors.
21:30
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Quick takeaways
- The emergence of low-cost AI tools like DeepSeek could significantly reduce the capital expenditures necessary for AI development, leading to broader adoption across industries.
- As operational costs of AI decline, businesses can automate complex processes, enhancing productivity and paving the way for innovative applications in various sectors.
Deep dives
Emergence of Low-Cost AI Tools
The rollout of a low-cost AI tool by DeepSeek has raised significant questions about the future of AI infrastructure and capital expenditures by major tech companies. This tool has the potential to mitigate prior concerns about the high costs of developing AI technology, particularly in terms of pre-training infrastructure. As costs associated with AI training evolve, projections indicate a trend toward lower capital needs, which might lead to increased adoption and new applications. This development suggests a shift in the market dynamics, potentially justifying investments made by companies while pivoting the focus toward more efficient AI utilization.
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