Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Lack of computing power: a threat to the growth of the AI industry


August, 02 2024
watermark Economic news

The hype around artificial intelligence (AI) has peaked, but experts warn that without a significant increase in computing power, the industry could face collapse. Recent stock market fluctuations related to NVIDIA, the leader in AI, and financial analysts' concerns about a possible AI bubble have drawn attention to the stability of the industry.


A serious threat to AI is the lack of computing power. Experts note that existing servers in data centres cannot cope with the huge computing loads required for AI to work. To support the growth of AI, it is necessary to develop a specialized digital infrastructure, creating modern data centres with powerful graphics processors designed to work with AI. 


Fortunately, there is a positive trend: financial institutions, retail investors and large technology companies are actively investing in AI. However, in order to maintain this growth and investor confidence, it is extremely important to provide a stable and scalable computing infrastructure. 


The AI bubble, according to experts, is not the result of inflated expectations, but rather an expression of sincere concern about insufficient infrastructure for the development of AI. A shortage of servers can lead to the fact that the demand for AI data processing exceeds the market's capabilities, which will provoke a recession.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.