"Ali baby" warns against a bubble in data centers for artificial intelligence

The chairman of the board of directors of ‘Ali Baba Group Holding’ Joe Tsai warned about the possibility of forming a bubble in the data centers, suggesting that the rate of expansion in this area may exceed the initial demand for artificial intelligence services. During the global investment summit organized by HSBC in Hong Kong, the billionaire said that the rush through major technology companies, investment funds and other entities to create servers from America to Asia seems to be random. He added that many of these projects were built without clear customers. From “Microsoft” to “Soft Bank”, technology companies spend on both sides of the Pacific billions of dollars to buy “Envenia” and Sk Hynix chips needed to develop artificial intelligence. The “baby” itself, which announced in February that it would entirely adopt artificial intelligence, brought the plans to invest over the next three years to invest more than $ 380 billion Yuan ($ 52 billion). In this context, the server farms from India were distributed to Malaysia, while US President Donald Trump promotes the Stargate project in America, whose investments are expected to reach half a trillion dollar. The feasibility of expenses to artificial intelligence, “Ali Baba” stocks have dropped by more than 3% on the Hong Kong stock exchange. At the same time, many analysts at Wall Street began to question the justifications of this spending, especially after the emerging Chinese company “Deep Cick” launched an open source artificial intelligence model that claims to be comparable to American technology, but it was built at a much lower cost. Critics also indicated the constant shortage of realistic and practical applications of artificial intelligence. “I feel like we started to see the signs of a bubble of some kind,” Zayi said in front of the audience. He added that some planned projects are starting to raise funds without entering into agreements that guarantee the consumption of services or the demand for them in the future. He continued: “I start to worry when I see people building databases in a proactive way without real request. There are many parties that have started to appear, and funds collect capital with billions or millions of dollars.” ‘Ali Baba’ sees a strong return in 2025, partly powered by the widespread distribution of its platform for the ‘Qin’ model, which the company hopes to contribute to improving its basic businesses in trade and wool computer services. During the summit, Joe Tsey talked about “Ali Baba” went through a “restart” phase, while she started working again after years of organizational investigation that combat her growth. The company has launched special programs to attract talent in the field of artificial intelligence, in support of its aspiration declared in the exploration of artificial general intelligence. US businesses spent at the same time on artificial intelligence have criticized Tsai its competitors in America, especially in terms of expenses. This year alone, Amazon, Alphabet and Meta promised to spend 100 billion, $ 75 billion and $ 65 billion respectively at the infrastructure of artificial intelligence. But in February, TD Cowen referred to indications that Microsoft has canceled some data centers in America, which raised questions about whether the company is exaggerated to obtain computer capabilities that exceed the real needs in the long run. Spending can exceed the demand. This concern has reduced the administration ‘Microsoft’, emphasizing that the company is currently spent more than it was spent at any time, most of which are for discs and data centers. The company said it expected to spend $ 80 billion on this financial year on data centers for artificial intelligence, but it expected the growth rate in this spending from next July. Tsai told the participants: “I am still surprising from the size of the numbers offered in America regarding investment in artificial intelligence,” Tsai told the participants. He concluded: “People literally talk about $ 500 billion, or a few hundreds of billions of rands. I don’t think it’s completely necessary. In my opinion, there is an investment that precedes the actual claim that exists today, and relying on a great increase in the future.”