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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.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.