McKinsey & Company warns companies that AI spending may rise even further as agents become more common. Compared to text-based AI tools, agents can cost much more to run because they are actually completing tasks. Such tasks are often multistep processes, so the same goal can be accomplished in a variety of ways, and costs
For months, Wall Street debated whether AI spending had become too much, too fast. Now, after calls by some of the industry’s biggest names to slow frontier AI development, investors are asking whether AI spending could slow, too. “Does a “pacing slowdown” necessarily imply a spending slowdown? We don’t think so,” Bernstein analysts wrote Monday,
Tech leaders like Dario Amodei, Sam Altman, and Elon Musk are calling for a slowdown in the development of AI, and investors on Monday appeared to be taking the notion seriously. Stocks linked to the AI boom tumbled as investors processed the implications of frontier labs hitting the brakes. The Philadelphia Semiconductor Index fell as
Nvidia will officially cap off tech earnings season today after the closing bell. It’s been a tumultuous several weeks for the AI trade and mega-cap tech more broadly, with investors reacting sharply to results on both ends of the spectrum. On one side you had Alphabet and Tesla, which drew investor ire after ramping up
