It is estimated about $1 trillion will be spent on capex in the coming years, including significant investments in data centers, chips, other AI infra, and the power grid. ‘Overbuilding things the world doesn’t have use for, or is not ready for, typically ends badly.’ warned a Goldman Sachs report in Jun 2024.
Sequoia’s David Cahn’s rule of thumb is that companies in aggregate will need to generate about 4x in revenue (about $600Bn) vs. what they spend ($150Bn) on Nvidia data centers. Currently, there isn’t sight of such scale revenue anywhere, whatsoever.
Besides, most of this spend and commensurate revenue may accrue to big tech and the hyperscalers.
Hence, in this very challenging environment, how can AI startups expect to capture, defend and grow market share? Which segment does most of the opportunity lie in – is it the application layer, vertical companies, foundation model providers, any other?
FutureMatters Stage
Hall 2, Singapore EXPO
