AI’s race to transform the world before the money runs out

It "dwarfs" what was spent in the railroad or dotcom booms, even after adjusting for inflation, PwC said.Meanwhile, Anthropic, just one of the major firms in the AI race, plans to spend $518 billion in coming years, according to the IPO prospectus seen by Reuters, which is more than 100 times its 2025 revenue.Its backers say AI technology will be more transformational than the advent of steam engines and the….

That would be a substantial increase from the baseline expectation of the US Congressional Budget Office of 1.75% annual productivity growth for that period.For the US alone – which according to some estimates accounts for about three quarters of the global AI investment total – investment will run as high as about $9 trillion from 2025 to 2032, equivalent to spending 3.2% of US GDP each year, according to Columbia….

It earns a fraction of that now.The leveraged structure of much of the debt funding AI infrastructure also means "a relatively modest deterioration in demand, delays, or asset values can therefore produce much larger losses," he wrote in a conference paper, revised in October.The dizzying numbers have not stopped US AI bosses speaking with an otherworldly zeal about changes afoot.Anthropic's Dario Amodei has said an AI future could be "a….

Yet the pace of change in productivity might still end up lagging the timelines needed by corporate accounts departments.Diane Coyle, an economist at Britain's Cambridge University, said the productivity impact of past revolutionary technologies had usually taken about 10 to 50 years to feed through.Anthropic's economics team modeled a range of scenarios for how much extra growth AI would deliver at an annual rate in 2030.

Assuming a baseline of 2% in a non-AI environment, it suggested growth of 2.4% in a scenario with modest AI impact, 5.4% in a substantial scenario and 15.4% in an extreme scenario.Higher growth would mean more jobs lost, it said, without assigning probabilities for any of the outcomes.Also Read: Bill Gates warns AI is powerful enough to 'cause a billion deaths'Amodei forecast last year that AI could wipe out half….

For now, however, some researchers say it appears to have been limited to making it harder for those seeking office work to find a job.Studies in the US and Britain have pointed to a slowdown in early career hiring for white-collar positions performing tasks at which AI is adept, even if overall employment remains strong.Researchers at Stanford University said in August that employment of workers aged 22 to 25 in….

"As long as one is left with the infrastructure that's needed to support all the productivity effects down the road, that's okay." ​

AI's race to transform the world before the money runs out Updated 10 minutes ago Economists see little evidence yet of productivity gains as spending on AI dwarfs railway, internet sums.