By Hamiz Mushtaq Awan
This blog post is the third in a four-part series on AI Investment Themes. The first post explained Core AI, and the second post explored AI Hardware. In this post, we delve into AI Infrastructure, examining the backend technologies that support AI systems. The final post will cover Applied AI.
Series Format
In my analysis, I categorize the main AI investment themes into four distinct yet interconnected categories:
AI Infrastructure: Details
This crucial category underpins the entire AI ecosystem, providing the necessary backend technologies and platforms that enable AI systems to operate efficiently and effectively.
AI Infrastructure: The Digital Backbone of AI
AI Infrastructure is fundamental to scaling and executing the opportunity of AI technologies:
- Vector Databases: These databases are optimized for handling complex AI workloads, enabling efficient storage, processing, and retrieval of large-scale AI data sets. Vector databases allow companies to search for relationships in their unstructured data and help their models remember those relationships over time. The argument is that all LLMs will use vector embeddings, and all applications will use LLMs.
- Cloud Computing Platforms: Cloud services provide the computational power and scalability for training and deploying AI models, making them a cornerstone of modern AI infrastructure. AI-first cloud computing platforms offer both vertical and horizontal scaling to meet the demands of the most advanced AI workloads.
- Data Management and Processing Tools: Tools and platforms that manage and process data are crucial, as AI systems require vast amounts of data for machine learning and analysis. Companies have to architect a data architecture that is not restricted by the format and source of the data to utilize the full potential of AI technologies.
This infrastructure provides the frameworks and systems necessary for AI applications to function, from data analytics to machine learning models.
Challenges of Investing in AI Infrastructure
Conclusion
Investing in AI Infrastructure is about enabling the foundation upon which all AI technologies are built and operated. It presents unique opportunities for growth and innovation in the AI sector. While it carries its set of challenges, its fundamental role in the AI ecosystem makes it an integral part of the AI investment landscape.
In our next edition, we explore Applied AI, delving into the practical application of AI technologies across various industries and their transformative impact on businesses and society.
