Microsoft AI chief Mustafa Suleyman warns AI race will cost hundreds of billions over the next decade
Suleyman said competing at the AI frontier could cost hundreds of billions of dollars over the next five to ten years.
He argued that Big Tech’s scale, capital, and talent access create a structural advantage in the AI race.
Microsoft aims to become self-sufficient in developing advanced AI models while prioritising safety and alignment.
Microsoft AI chief Mustafa Suleyman warned that keeping up with artificial intelligence will require investments in the hundreds of billions of dollars over the next decade. Suleyman stated on the Moonshots with Peter Diamandis podcast, which was released on Wednesday, that the financial burden of developing frontier AI systems extends beyond computing infrastructure. He cited the rising costs of hiring top researchers and engineers, describing AI development as an industrial-scale effort that benefits companies with deep pockets.
SurveySuleyman compared Microsoft’s AI push to a modern construction operation, in which massive workforces effectively assemble gigawatts of computing power using CPUs and specialised AI accelerators. He claims that because of the sheer scale required, large, established companies can sustain long-term investment more easily than smaller players.
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For those unaware, Microsoft has a current market capitalisation of approximately $3.54 trillion and reported quarterly revenue of $77.7 billion for the period ending September, exceeding market expectations. Suleyman stated that his goal is to make Microsoft self-sufficient in the development of its most advanced AI models, while also building a world-class superintelligence team.
He also stated that Microsoft’s goal is to develop AI systems that are aligned with human values, in addition to leading in performance and safety. Suleyman has previously described his goal as developing a “humanist” type of superintelligence.
Suleyman also mentioned the uncertainty surrounding how quickly AI capabilities could accelerate, which is fuelling aggressive valuations in the sector as investors speculate about the possibility of multiple players making breakthroughs at the same time.
This comes as all of the major tech companies, including Google, Meta, Amazon and others, work towards artificial general intelligence and, eventually, superintelligence. Industry leaders have become more open about the financial risks involved. Meta CEO Mark Zuckerberg has stated that he would rather spend hundreds of billions of dollars than fall behind in what he sees as the most transformative technology in history.
Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile