According to a report by Bloomberg Intelligence, the generative AI market is set to grow to $1.3tn by 2032, a remarkable increase from the $40bn revenue generated last year. This growth is mainly due to the release of customer-driven AI tools such as ChatGPT and Google’s Bard, which are set to drive a decade-long boom in the industry. Typically, generative AI utilizes significant quantities of data harvested from the internet to learn and create realistic-looking images and answers to customer queries. As a result of this growth, companies such as Nvidia, Amazon’s cloud division, Google’s Alphabet, and Microsoft, which has been investing billions of dollars in OpenAI, are projected to be among the main beneficiaries of this AI revolution.
C3.ai, a software firm, has been experiencing a decline in the Nasdaq Composite this week due to pessimism in its sales outlook, creating investor uncertainty in AI companies like them. However, chipmaker Nvidia, which has become Wall Street’s most significant AI bet, has been performing well, with its shares soaring by 28% since May 24. The Silicon Valley company has briefly hit a $1tn valuation this week.
Mandeep Singh, a Bloomberg Intelligence analyst, explains that generative AI is set to become an increasingly essential part of IT, alongside ad spending and cybersecurity, as it continues to develop. The report further suggests that the significant driver of revenue growth from generative AI will be the demand for the necessary infrastructure to train AI models, projected at an approximate worth of $247bn by 2032. Moreover, AI-assisted digital advertisement businesses are projected to reach an annual revenue of $192bn by 2032, while revenue from AI servers is expected to reach $134bn.
