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AI's New Era: Deep Pockets & Hard Assets Needed
17 Aug
Summary
- Artificial intelligence requires significant capital investment.
- Hard assets and substantial funding are now crucial for AI ventures.
- This marks a shift from earlier, capital-light tech businesses.

The dominant force in technology has moved from capital-light, cash-flow-rich sectors like internet search and social media to artificial intelligence.
Playing in the AI arena now necessitates significant investment in hard assets and substantial financial backing, a requirement that few companies can readily meet.
This represents a fundamental shift in the business model for major technology players, moving away from the lean operations of the past towards a capital-intensive future.