The AI industry is soon to become a trillion dollar industry. As the global economy is expanding, some sectors are performing better than others, but the AI industry is outperforming others by a huge margin. Because big tech companies are pouring in billions of dollars for developing the technology and every other side of business is looking up to leverage its potential, from manufacturing to sales and marketing to education, the impact is huge.
The trillion dollar industry
The debut of artificial intelligence tools that are focused on end consumers, mainly ChatGPT, Google’s Gemini, and MidJourney, is set to boost the sector for a decade or two, which will take the market for artificial intelligence to $1.3 trillion by 2032, according to estimates.
Investors, who changed focus two years ago from generative AI, are flocking in again, and Nvidia Corp. has become their best bet ever since. This is the same company that has 80% of the market share for processors that power machine learning platforms, and its value has tripled over the last year.
It is now the company that investors look to to make their AI investment decisions, even in AI-based cryptocurrencies, and its stock has become an indicator to measure the performance of other stocks. The company is now the third largest public company in the world with a $2.2 trillion market cap.
Many other tech companies are also showing tremendous growth and are key players in AI development, including Alphabet, AMD, Amazon, Meta, and Microsoft. Demand for AI has increased worldwide since the release of ChatGPT, and other big brands have also joined the spree to develop their own AI models.
Nuclear, mineral, and electronic makers are also in line
These models require a large number of datasets and computing power for training so that they can provide the desired output from text-based replies to images and videos. Now, technology is infiltrating nearly all things tech, from self-driving car systems like Tesla and Wayve to everything imaginable like robots and whatnot. Yes, as are conservation efforts around the globe.
As we said, AI models require computing power, which relies on computer hardware, and all tech giants are developing big data centers to cater to this need. Meta recently announced plans to spend $40 billion in the next few years to build AI infrastructure, which will definitely generate revenue, but the initial investment in infrastructure will go towards the producers of semiconductors like Nvidia, AMD, and Intel before software giants can reap profits.
Amazon’s cloud operating profit is 62% of the entire operating profit of the company for the first quarter. Despite the fact that the company is by and large an online retail giant, it has become a key provider of information technology for providing computing services to governments, startups, and larger companies.
Another side that is also observing fast growth is the energy sector, as AI is an extremely power-hungry resource and companies like OpenAI and Microsoft are seeking nuclear power sources to power their data centers, which has forced investors to look into nuclear energy-related stocks and ETFs, which have seen a good upward trend recently. Uranium is the last thing that has gained 70% of its price during the past year, as it is the fuel for nuclear power.
But how can something be the last thing with AI? JPMorgan and other investment banks are now looking into industries that manufacture basic components for tech companies and are estimating them to be breeding grounds for AI. Now you can decide where the money is going and what to follow with your instincts.
