Generative AI market revenue could reach more than 1.3 trillion USD by 2032
Generative AI, also known as generative artificial intelligence, creates new data based on existing data. ChatGPT is an example of a large language model that generates new content based on existing data.
According to Bloomberg Intelligence research, the revenue of the Generative AI market will continue to grow until 2023. By 2023, revenue is predicted to be $67 billion, and it is expected to reach over $1.3 trillion by 2032, nearly 20 times the current amount. Additionally, Generative AI is projected to account for 12% of global technology spending, a significant increase from the current 3%.
Based on these market growth predictions, investors who choose the right projects and focus areas have the potential to earn 20 times their investment in the next 10 years. This is similar to buying BTC at $3,000 and selling it for over $60,000 in profit.
Attractive compound annual growth rate
A 20x return may be considered modest compared to the compound annual growth rate of smaller niches in Generative AI.
When comparing Hardware and Software for AI, the software sector with its Compound Annual Growth Rate (CAGR) is more appealing. However, it is also a highly competitive field, and major tech companies specializing in AI hardware have already influenced the market. The software sector boasts a CAGR of 69%.
For Crypto investors, the Crypto market will align with the Software of AI, resulting in real Blockchain applications combined with AI.
Crypto market vs. AI
Until now, the Crypto market has not witnessed a breakout from the AI trend. In the stock market, the recent AI trend has significantly propelled the S&P 500’s return to the all-time high zone. However, when AI intersects with Crypto, it gives rise to a range of conflicts encompassing development philosophy and applicability. Even the creator of ChatGPT, who now serves as the Founder of a Crypto project called Worldcoin, faced substantial criticism.
The central conflict lies in the fact that AI necessitates centralized data processing, while Blockchain relies on distributed and immutable data. Perhaps Crypto innovators must discover a way to reconcile these two technologies, meeting practical requirements, and unleashing the Crypto market’s potential explosiveness. Arthur Hayes predicts that once Bitcoin emerges as the currency for AI, its price could soar to over $760,000.
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