The Standard reported that Morgan Stanley chairman and chief executive Ted Pick estimated AI development could require US$10 trillion to US$15 trillion in capital over the next decade. Pick spoke on 3 November at the 5th Global Financial Leaders’ Investment Summit.
Pick said the investment could drive 50 to 70 basis points of real GDP growth. Financing it, he said, depends on frontier labs, chip makers, infrastructure builders and energy providers working together. Goldman Sachs chairman and chief executive David Solomon said demand for computing capacity currently exceeds supply, although he expects longer-term value to shift towards AI applications.
Pick compared the current period with technology cycles in 1999 to 2000, 2001, 2003, 2006 and 2008. He called periodic corrections “very healthy”, while cautioning that some projects would have poor capital structures and “will eventually not pass the test of time”.
