PYMNTS. Tech companies betting big on AI’s future still need to heed caution
As tech titans and startups alike pour billions of dollars into AI infrastructure, training, and development, tech analyst Vaclav Vincalek strikes a cautionary note.
Between Microsoft's $3.3-billion AI data center in Wisconsin, startup Atlan raising $105 million for its AI-ready data stack, and Mistral AI seeking funds at a $6-billion valuation for open-source language models, it’s clear tech giants are willing to invest significant sums to win the high-stakes race to harness AI’s transformative potential and reshape entire industries.
Speaking with PYMNTS, Vincalek, the founder of 555 vCTO, urged caution to those tech companies trying to stay ahead of the pack when it comes to AI.
Cautiously investing in advanced AI
Vincalek is a virtual CTO who advises clients on how best to integrate technology into their business strategies. He tells PYMNTS that people should be cautious jumping on the AI bandwagon whenever there’s a big announcement, such as the recent news from Microsoft about its new AI data center.
“It seems to release ‘major’ AI announcements every week and most are just news fodder,” he says. “$3.3 billion isn’t a small sum, but right now it’s just a number. Same thing when Google announced its billions in AI investments two weeks ago. The large corporations want to be seen as the AI company, but I wouldn’t be banking on any one company right now until we see tangible results that positively impact business operations.”
PYMNTS also featured Microsoft vice chair and president Brad Smith, who laid out the company’s vision for its new multibillion-dollar AI data center slated for Racine, Wisconsin.
“We will use the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country,” Smith said in a release. “This is what a big company can do to build a strong foundation for every medium, small and start-up company and non-profit everywhere.”
Vincalek sees Microsoft’s investment as a savvy marketing and business move.
“Hyperscalers like Microsoft are rushing to expand the capacity for AI applications for one very simple reason: it’s good for their bottom line,” he adds. “From a marketing standpoint, they want to appear on the leading edge of innovation and they want to retain the ‘first-mover’ advantage over their competition. It’s a business strategy, and a very good one.”
Other benefits of advanced AI
PYMNTS also featured Prukalpa Sankar, co-founder of Atlan, in the piece, who spoke to the primary barrier facing corporate leaders planning their AI strategy.
“Over the past year, boards have consistently asked their CIOs and CDOs about their AI roadmaps, who have realized that the main hurdle isn’t AI models but the lack of AI-ready data — data enriched with business context, trust and security,” she said in a news release. “Atlan is addressing this by building the control plane for the data and AI stack, integrating trust and context into the digital fabric.”
For companies with the right foundation in place, there are other productivity benefits to glean from advanced AI tools, Vincalek notes.
“Assuming the infrastructure gets built, companies would have access to more advanced AI capabilities,” he says. “For example, more sophisticated machine-learning algorithms can help analyze larger and larger datasets in shorter time frames. Or improved natural language processing to actually better serve customers with AI.”
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