It Really Is Possible to Spend Too Much on AI

It has become a tech-industry truism: Spending too little on chips and other computing infrastructure for artificial intelligence is riskier than spending too much.

As OpenAI Chief Executive Sam Altman recently put it, people can either overinvest and lose money or underinvest and lose revenue. Or as Meta Platforms chief Mark Zuckerberg said on a call with analysts after it reported earnings last month, AI’s promise as a revenue driver meant “we want to make sure that we’re not underinvesting.”