AI Investment Is Shifting as Inference, Enterprise Adoption Accelerate

Companies are deploying artificial intelligence at an increasing rate following a slow start, say Goldman Sachs Asset Management’s Brook Dane and Sung Cho following a road trip to Silicon Valley. Constraints on computing power are expected to tighten as AI models process more complex tasks. Data centers are projected to switch data transmission lines from copper to fiber optics as the need for speed and interconnectivity intensifies, which may create investment opportunities among suppliers of fiber optics. Rather than cannibalize online search advertising, AI models are improving the economics for internet platforms by deepening user data.