Major Wall Street investment banks, such as Goldman Sachs and Barclays, have expressed concerns about the sustainability of investments in artificial intelligence (AI). They point out that the high costs of AI technology and the lack of breakthrough applications could lead to difficulties in realizing the expected economic benefits.

Goldman Sachs senior equity analyst Jim Covello mentioned that the returns on AI investments are currently not substantial, and there is even a possibility of a bubble burst.

Barclays' analysis notes that, aside from OpenAI's ChatGPT and Microsoft's Copilot, there are currently no large-scale successful AI products. It is expected that by 2026, large technology companies will invest $60 billion annually in large AI models, but the annual revenue will be only around $20 billion, indicating significant uncertainty in investment returns.

David Cahn, a partner at Sequoia Capital, also stated that the gap between the returns and expenditures on AI investments is widening, with current investment returns being low.

Despite this, investment firms such as a16z continue to invest heavily in the AI sector, fearing that insufficient investment may lead to greater risks. a16z has led multiple generative AI investment deals in the past two years and has launched two funds focused on AI infrastructure and applications. Technology giants like Alphabet (GOOGL) are also increasing their investments in AI, believing that AI products require time to mature and that the risks of underinvestment are greater.

Goldman Sachs analyst Jim Covello cautioned that past technology transformations typically replaced expensive solutions with cheaper ones, whereas AI technology is costly, which contradicts historical experience. Current AI investments show signs of bubbling, but the bubble is unlikely to burst in the short term. Investors should be cautious, as related stocks could experience significant declines if AI investments fail to meet expected returns.