The financialisation of AI is just beginning (www.economist.com)

A significant shift in the financial landscape of artificial intelligence is underway, as major U.S. tech companies are projected to invest $700 billion in capital expenditure this year, primarily for building the data centers essential for AI development. This surge in investment surpasses the $570 billion allocated by the oil and gas industry for exploration and production last year, highlighting a pronounced shift in economic priorities. The phrase "data is the new oil" is gaining traction, reflecting investors' recognition of the immense value and necessity of data processing capabilities. This financialisation of AI signals a pivotal moment for the AI/ML community, as it not only emphasizes the increasing importance of infrastructure to support AI technologies but also hints at the emergence of new financial instruments tied to AI assets. The focus on securities, hedges, and collateral related to AI investments suggests that as the technology grows, so will its integration into traditional financial systems. The implications for researchers and developers are profound; a more robust financial backing could accelerate innovation and adoption of AI solutions across various industries.