AI Tools Such as ChatGPT and Google’s Bard to Fuel Decade-Long Boom in Generative AI Market
The market for generative AI is expected to grow from $40 billion in revenue last year to an estimated $1.3 trillion by 2032, according to a report by Bloomberg Intelligence analysts. The sector could expand by 42% over the next decade, driven by the demand for infrastructure necessary to train AI systems and ensuing devices that use AI models, advertising and other services. The release of consumer-focused AI tools such as ChatGPT and Google’s Bard is set to fuel this boom.
Disruptive Technology
Since the release of ChatGPT last year, demand for generative AI has boomed worldwide. This technology is expected to disrupt everything from customer service to banking. It uses large samples of data to learn how to respond to prompts, allowing it to create realistic-looking images and answers to queries that appear to be from a real person.
Biggest Winners from the AI Boom
Amazon.com Inc.’s cloud division, Google parent Alphabet Inc., Nvidia Corp., and Microsoft Corp. are among the biggest winners from the AI boom, according to Bloomberg Intelligence analysts. Microsoft has invested billions of dollars in OpenAI. Nvidia, which has emerged as Wall Street’s biggest AI bet, saw its shares soar by 28% since May 24, briefly reaching a $1 trillion valuation this week.
Revenue Growth Forecast
Bloomberg Intelligence’s forecasts show that the largest driver of revenue growth from generative AI will come from demand for the infrastructure needed to train AI models, amounting to an estimated $247 billion by 2032. The AI-assisted digital ads business is expected to reach $192 billion in annual revenue, and revenue from AI servers could hit $134 billion.
Investors Take a Pause
Investors took a pause from their obsession with all things AI on Thursday. The software firm C3.ai fell as much as 24% in New York, extending Wednesday’s 9% decline following a disappointing sales outlook. But chipmaker Nvidia resumed its rally, rising 3.3%.
Editor Notes: Generative AI Market Poised for Rapid Growth
The advent of consumer-focused AI tools such as ChatGPT and Google’s Bard positions the generative AI market for rapid growth. An estimated $1.3 trillion in revenue by 2032 indicates strong growth potential. However, there are also concerns regarding the impact of AI on the future of work and the economic disparities it may cause. It is essential to address these issues as the AI sector continues to thrive. Visit GPT News Room here to stay up to date with the latest news on AI and other emerging technologies.
Main keyword: generative AI
Other related keywords: AI tools, ChatGPT, Google’s Bard, revenue growth, infrastructure, demand, AI models, digital ads business, AI servers, Microsoft, Nvidia, OpenAI, C3.ai.
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