The State Of AI Infrastructure: Demand, Costs, And Custom Silicon

ARK Investment Management5.94K FollowersFollow5ShareSavePlay(24min)CommentsSummaryGlobal growth in data center systems investment has accelerated from 5% at an annual rate in the 10 years ended 2022 to 30% in the last 3 years, and is likely to increase more than 30% to $653 billion in 2026.According to our research, AI training costs have been falling 75% per year.Significant investment in infrastructure has been necessary to satisfy the strong demand signals.Beyond physical data centers, compute has dominated AI CAPEX. Nvidia has been at the vanguard of the accelerated compute age.In addition to merchant GPU vendors, hyperscalers and AI labs are hoping to keep Nvidia in check by building in-house chips to lower their AI compute costs. imaginima/iStock via Getty Images By Frank Downing, Director of Research, AI and Cloud Spending On AI Infrastructure Has Exploded Demand for accelerated compute has exploded in the three years since the launch of ChatGPT. Nvidia’s (NVDA) annual revenueThis article was written byARK Investment Management5.94K FollowersFollowARK Invest holds a precision lens on thematic investing. We focus on disruptive innovation and identify themes that will enhance productivity and create wealth. ARK seeks to research and invest in technologically enabled innovation that cuts across economic sectors and changes the way our world works. Our current themes include: Industrial Innovation, Web x.0, and the Genomic Revolution. Innovation is inevitable, and ultimately wins out in an equity market. Our research is made available on our website and we invite everyone to participate in our discussions around thematic investing in innovation. For more information please visit: https://ark-invest.com