The heat of AI investment and the beginning of selection
The momentum of AI investment can no longer be measured solely by the amount of equipment. While some believe that the US economy is close to recession, excluding AI investment, HSBC's CEO warned that there is a need to be selective about data center investments. During the same period, Capable raised $38 million for its drug discovery lab and Disney spent $180 million on talent for Character.AI. Funds have expanded from expanding computing resources to partnering with others, human resources, and uses. What this half-day article has in common is that rather than looking at the size of the investment amount, it is necessary to look at what the funds are tied to and under whose judgment and responsibility. In this text, we will examine each aspect of investment, partnerships, human resources, regulations, and creation in order.
Some people are questioning the way they choose investments based on their view of the U.S. economy. CFO.com reported, ``The U.S. economy is close to recession, excluding AI investment.'' This view shows that the support for the economy is biased toward AI investment. HSBC's CEO warned on CNBC that even amid the AI boom, data center investments need to be selective. The same atmosphere exists in the market. Seeking Alpha reports that concerns about AI have reignited, interest rates have expanded in peripheral countries in Europe, and oil prices have continued to rise. While AI investment supports the economy, momentum can only be measured by the size of the investment. However, since there have been simultaneous calls for doubts about its support and calls for selection, readers need to look at what the investment will lead to, rather than the size of the amount.
Funds are going beyond equipment. Capable has raised $38 million in seed funding to build an AI drug discovery lab, according to Dealroom. Apart from equipment expansion, we can see that new financing is being raised for specific purposes. On the major side, Yahoo Finance reports that AstraZeneca (LSE:AZN) could be undervalued by 22% based on AI partnerships and pipeline updates. This number is an estimate based on the analysis of the same article. Here, companies are evaluated based on how they use AI and which alliances and development pipelines they link it to.
What all four ingredients have in common is that the categorization of AI alone is becoming insufficient as a reason to collect funds or raise evaluations. The units that need to be looked at are detailed, such as the scale of the data center, the purpose of drug discovery, and the partner companies of major companies. Once we enter the stage where the nature of the investments that support the economy is being questioned, the next thing to look at is where the funds are being transferred from equipment.
