Will AI Companies Generate Enough Revenue to Continue the Build-Out? Here’s What Nvidia CEO Jensen Huang Says.
Artificial intelligence (AI) stocks have taken a tremendous hit in October, as a toxic combination of higher interest rates and skepticism over the returns on AI spending has led to a steep sell-off.
Higher interest rates make it more costly to build AI data centers, all else being equal. Meanwhile, while leading AI labs Anthropic and OpenAI are still private, recent media leaks about their third-quarter revenue figures have suggested a potential slowdown.
If these two labs’ revenues don’t grow as much as some people anticipate, investors may cast doubt on the entire AI build-out, since Anthropic and OpenAI wouldn’t be able to fund their commitments.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.