Ironically, according to a study by the Information Technology Association of America (ITAA) entitled Race to the Horizon -- "U.S. leadership in high technology faces challenges domestically and abroad. This pressure comes from global competitors who share America�s appreciation for the economic, political and social benefits of high tech; and from domestic legislators who would subject parts of the IT industry to burdensome regulation or discriminatory taxation. Foreign nations are willing and able to do what it takes to race ahead of today�s market incumbents and our own lawmakers seem to always rationalize the need for further control � despite the negative impacts this control would have on the industry. Over the next four years the next Administration, the Congress and the states will play a critical role in determining whether the U.S. retains its lead or, through lack of clear vision and halting public policy resolve, allows itself to slip into also ran status."
Two years after ChatGPT captured the world's imagination, there's a dichotomy in the enterprise artificial intelligence (AI) market. On one side, technology vendors are making unprecedented investments in AI infrastructure and new feature capabilities. On the other, there's measured adoption from customers who carefully weigh the AI costs and proven use case benefits. Artificial Intelligence Market Development The scale of new investment is significant. Cloud vendors alone were expected to invest over $150 billion in capital expenditures in 2024, with AI infrastructure being the primary driver. This massive bet on AI's future is reflected in the rapid growth of AI server revenue. Looking at just two major players - Dell Technologies and HPE - their combined AI server revenue surged from $1.2 billion in Q4 2023 to $4.4 billion in Q3 2024, highlighting the dramatic expansion. Yet despite these investments, the revenue returns remain relatively modest. The latest TBR resea...