Two of Asia’s biggest economies showcase the varying economic impact — and opportunities — presented by AI development.
China’s optical-communication companies are seeing a boost thanks to huge demand for the underlying hardware required to build out AI infrastructure, including lasers, optical fibers, and transceivers: “Everything is in shortage,” one Guangzhou-based executive told Nikkei.
India’s software sector, by contrast, is vulnerable to the growing use of AI in place of programmers and the country lacks major players in AI infrastructure, models, or chips, driving foreign investors to slash their exposure to its stock market. “What markets haven’t fully priced yet is that this isn’t an earnings miss story in India,” an investment adviser told Bloomberg, “it’s a terminal value story.”