Artificial intelligence will change everything from booking flights to brewing beer. Financial analysts estimate that AI will raise global GDP by about 10% to 20% over the coming decade. Just as most businesses became internet businesses in the 1990s and 2000s, nearly every business will be an AI business a decade from now.
To deliver the compute power fueling this transformation, companies, countries, and capital markets have mobilized resources at an unprecedented scale. When Chinese AI firm DeepSeek released its latest open-source model at a fraction of the expected training cost, it called these investments into question, inviting a tech selloff. Yet shares have rebounded. As economists would point out, for products with strong demand like AI, technological developments that lower costs through resource efficiency drive greater overall usage. Not surprisingly, Meta and Microsoft have since doubled down on their AI investments.
