Why AI Hardware, Not Just Bigger Models, Will Define The Future Of AI

The AI industry focuses heavily on software and language models, neglecting crucial hardware infrastructure. In 2024, less than 10% of AI investment went to infrastructure. Experts argue the next AI phase will integrate intelligence into physical systems, requiring advanced sensors, embedded computing, and durable hardware. While deploying AI in real-world environments is challenging, it potentially offers greater long-term benefits than software alone. Industry leaders call for increased investment in AI infrastructure to enable practical applications in physical domains.