AI spending growth seen slowing sharply by 2028, marking shift towards software: Morgan Stanley
The artificial intelligence AI investment cycle could move from a hardware-led phase towards software and applications by 2028 as growth in spending by hyperscalers and cloud providers is expected to slow sharply Morgan Stanley Research said in a report Morgan Stanley forecasts year-on-year growth in hyperscaler and neocloud capital expenditure to fall from 93 per cent in 2026 to 61 per cent in 2027 and 14 per cent in 2028 The brokerage said this points to a shift from heavy spending on chips and data-centre infrastructure towards software and AI applications
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AI spending growth seen slowing sharply by 2028, marking shift towards software: Morgan Stanley Why it matters: AI News is expanding the infrastructure surface for builders, which can change where inference runs, what gets deployed locally, and how teams package AI workloads....
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