Goldman Sachs says fears about AI bubble are overwrought

qz.com

2 points·giuliomagnifico··3 comments

Of course an investment bank will want you to continue to invest.

Yes but you can continue to invest in other sectors.

They’re saying that:

> "Generative AI still appears set to deliver a rapid acceleration in task automation that will drive labor cost savings and boost productivity, with our baseline estimates suggesting a 15% gross uplift to economy-wide US labor productivity following full adoption," the company wrote.

>It expects that adoption to take place over the next 10 years.

>The only possible hiccup, Goldman wrote, was that investors are betting heavily on companies early in the process. First movers are not always the ultimate winners in battles like this.

For example the adoption of generative AI in china is only at 35%.

There’s still lot of space.

A lot of money got made by shovel makers, laundries, gin shoppers during every gold rush.

There's a heap of civil construction, systems integration, electricity supply and cooling arbitrage going on as well as a land grab. If you can invest in land zoned for a DC or in supply and distribution of power or in tilt slab concrete systems, you're going to make a lot of money.

Or, if you broker premade DC to new cashed up clients as the olds tank and you pick it up in a fire sale.

If GS say there's money to be made I suspect they aren't wrong, even if I am an AI skeptic.

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