Zuckerberg admits that the AI frenzy may have led to overinvestment. "I think there's a good chance that a lot of companies are overspending right now." Pichai says the company may have invested too much in AI infrastructure, but he believes there's no other choice.
On July 26, according to Caixin, Meta Platforms CEO Zuckerberg said on a podcast show earlier this week that the company has been hoarding a large amount of Nvidia chips for the development and training of advanced artificial intelligence (AI) models.
Zuckerberg admits that the AI frenzy may have led to overinvestment. "I think there's a good chance that a lot of companies are overspending right now, and when we look back in the future, we'll probably find that we've spent tens of billions of dollars more than we should have."
It should be noted that he is not the only tech giant CEO to express this view. On Wednesday's Alphabet earnings call, CEO Pichai also noted that the company may be investing too much in AI infrastructure, but he believes there is no other choice.
Pichai said, "When you go through these curves, the risk of underinvestment is much greater than the risk of overinvestment for us." Yesterday, OpenAI announced that it is testing AI search function "SearchGPT," which could threaten Google's core business and put pressure on Alphabet's stock price.
In addition to Alphabet, Tesla also emphasized the high cost of AI development in its earnings call. It is anticipated that Microsoft, Amazon, Meta, and others will also "complain" about this in their earnings reports next week.
Earlier this week, Meta launched its latest open-source large model "Llama 3.1," despite investing heavily in the technology, Meta still insists on open-sourcing it. This means that external developers can access this technology for free.
In response, Zuckerberg emphasized that open source can promote the development of a complete ecosystem and keep models in the industry competitive, efficient, and open. Looking further ahead, open source will make AI safer, systems more transparent, and open to broad scrutiny.
Zuckerberg said on the podcast show that despite the high cost, the company has made a rational decision in AI investment because the cost of lagging behind is that you will be in a disadvantaged position in the most important technology in the next 10 to 15 years.
David Cahn, a partner at Sequoia Capital, commented in a blog post, "The arms race between Microsoft, Amazon, and Google is game-theoretic. Each time Microsoft upgrades, Amazon is pressured to upgrade to keep up, and vice versa."
Cahn posted a prisoner's dilemma game structure diagram in his article and explained, "Cloud computing giants see AI as both a 'threat' and an 'opportunity' at the same time. They have no breathing room during technology development, so they must act immediately."
"Microsoft, Amazon, and Google have a combined market capitalization of over $7 trillion. Every time they upgrade, there's only one simple reason: 'We have enough money to afford it.' Then the cycle reinforces itself."
On Tuesday, Tesla CEO Musk also mentioned that due to the development of the Dojo supercomputer, the electric car maker has a high demand for Nvidia hardware, "We have no choice. Nvidia will naturally raise the price of the GPU to a level the market can bear."
Editor/Lambor