AXIOS (Ben Berkowitz) - The business of AI is facing 4 harsh realities
Investors were confronted this past week with four difficult realities that may fundamentally change the way they think about AI the business vs. AI the technology: - AI is too expensive, say CEOs and even Microsoft itself. - It's not paying off nearly as much as companies expected, per a new Bain study . - Infrastructure demand is strong — but not as strong as the most optimistic wanted, as Broadcom showed with its "weak " forecast. - Financing that infrastructure is going to be more expensive for longer, with signs pointing to the Fed raising , not lowering, interest rates. Why it matters: Those realities challenge assumptions that powered markets to historic heights over the past few years. It's hard to justify chip or…