Corporations and investors have been spending billions of dollars on building AI. The current LLM models we use today, like GPT-4o, already cost hundreds of millions of dollars to train, and the next-generation models are already underway, going up to a billion dollars. However, Goldman Sachs, one of the leading global financial institutions, is asking whether these investments will ever pay off.
Sequoia Capital, a venture capital firm, recently examined AI investments and computed that the entire industry needs to make $600 billion annually just to break even on its initial expenditure. So, as massive corporations like Nvidia, Microsoft, and Amazon are spending huge amounts of money to gain a leg up in the AI race, Goldman Sachs interviewed several experts to ask whether investments in AI will actually pay off.
