What if the $3T AI investment boom goes wrong? (www.economist.com)

The AI investment boom is surging toward an unprecedented $3 trillion global spend on infrastructure by 2028, driven by massive commitments from major tech firms and startups like OpenAI and Anthropic, which together now approach a $500 billion valuation. This investment frenzy underscores the immense confidence in AI’s transformative potential across industries, from data centers to advanced model development. However, the scale and speed of this spending raise concerns about significant financial risk and market volatility. Even if AI technology ultimately delivers on its promise, many investors could face substantial losses as speculative funding outpaces sustainable business models. For the AI/ML community, this highlights the critical need to balance innovation with economic prudence, ensuring technological advancements are backed by solid commercial viability and real-world utility. Technically, the boom reflects an unprecedented leap in computing infrastructure—especially in data centers optimized for AI workloads—fueling rapid growth in large-scale models. Yet, it also signals a turning point where the community must critically assess the long-term scalability, ethical deployment, and societal impact of AI to avoid a potential downturn that could slow progress and undermine confidence in the technology’s future.