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Artificial Intelligence to reach $1.3 trillion in revenue by 2032

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Artificial Intelligence to reach $1.3 trillion in revenue by 2032

The release of consumer-facing AI tools, such as Google’s ChatGPT and Bard, is set to fuel a decade-long boom that will grow the generative AI market to an estimated $1.3 trillion in revenue by 2032, compared to $40 billion last year. According to a new report by Bloomberg Intelligence analysts led by Mandeep Singh, the sector could expand at a rate of 42% in ten years, driven first by the demand for infrastructure needed to train AI systems and then by the resulting devices that use artificial intelligence models, advertising and other services.

“The world is poised to see a burst of growth in the generative AI sector over the next decade that promises to fundamentally change the way the technology sector operates,” Singh said. “Technology is set to become an increasingly essential part of IT spend, ad spend, and cybersecurity as it develops.” Demand has grown worldwide following the release of ChatGPT late last year, with technology poised to disrupt everything from customer service to banking. It uses large samples of data, often culled from the internet, to learn how to respond to requests, allowing you to create realistic looking images and answers to questions that appear to come from a real person.

According to the report, the cloud division of Amazon.com Inc., the parent company of Google Alphabet, Nvidia and Microsoft which has invested billions of dollars in OpenAI, are likely to be among the biggest players in the AI ​​boom. According to forecasts by Bloomberg Intelligence, the main driver of revenue growth from generative AI will be the demand for infrastructure needed to train models, worth an estimated $247 billion by 2032. The assisted digital ad industry is expected reach $192 billion in annual revenue by 2032, while server revenue could reach $134 billion.

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Investors took a break from their obsession with all things AI on Thursday. Software firm C3.ai fell as much as 24% in New York, extending Wednesday’s 9% drop following disappointing sales forecasts. Chipmaker Nvidia, which has emerged as Wall Street’s biggest bet on AI, resumed its rally, jumping 3.3%. Its shares have jumped 28% since May 24, and the Silicon Valley company briefly hit a trillion-dollar valuation this week.

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