There's been a lot of talk about artificial intelligence's current phase: infrastructure building. That has obvious benefits for chipmakers such as Nvidia and hyperscalers like Amazon , Microsoft and Alphabet . Hyperscalers provide the massive cloud computing power needed for AI applications, and analysts have predicted the growing need for more data centers as they house the vast amounts of computing power needed for AI workloads.
" An increase in investment in generative AI model training and inference will drive the AI networking spending growth of 34% over the next five years, said the firm. That translates to $34 billion in spending in 2028, up from Morningstar's 2023 estimate of $8 billion. "Networking creates a performance bottleneck for generative AI model development," Morningstar's analysts said.
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