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Luke Munn, Research Fellow, Digital Cultures & Societies, The University of Queensland

Friday essay: despite the AI hype, some experts warn of a bubble – what happens if it pops?

Stop the Race, Rachel Shu/AAP

In the last few years, the hype around artificial intelligence has become stratospheric. Riding a wave of venture capital, tech leaders promised us AI would revolutionise work, boost productivity and lead to incredible new breakthroughs. OpenAI, the creator of ChatGPT, set a new record when it attained US$110 billion in investments several months ago – and its CEO, Sam Altman, recently claimed Australia could become a “data capital of the world.”

Sky-high promises have been accompanied by sky-high investment in data centres, the sprawling server farms that power the training, execution, and maintenance of these models. A monstrous new hyperscale facility proposed for Sydney’s west – 1 gigawatt across 52 hectares – would rank among the world’s biggest. It will join 162 existing centres and 90 in the works across Australia, which is projected to be the world’s third largest data centre market by the early 2030s.

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