7. Generative AI – especially from large public cloud suppliers will continue to grow at tremendous rates

Artificial Intelligence (AI) has been threatening to take a lead role as a revenue generator in our industry for many years. 2023 was a year in which we saw very dramatic growth from the specialist suppliers involved. My Figure above shows Nvidia’s reported ‘datacenter’ revenues by quarter; this is where it counts sales of its GPUs and associated Infiniband networking). In terms of solutions IBM’s Watson and Watson X alongside cloud-based ones from AWS, Google and Microsoft have also seen dramatic growth. AI will continue to grow rapidly in 2024. Time will tell whether the late moves to address AI ethics and safety through alliances and regional legislation are enough to prevent some major catastrophes as commercial and government organizations begin to deploy generative AI at scale.

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