What's Happening?
Morgan Stanley analysts have introduced a new economic measure called Gross Domestic Intelligence (GDI) to assess the AI resources of nations and industries. GDI focuses on the availability of AI compute infrastructure, such as GPUs, networking gear,
and data centers. According to Epoch AI, a research group, the United States leads globally with 75% of AI computational power, followed by China with 10%. The concept of GDI is gaining traction as a potential investment overlay to evaluate national and industrial competitiveness in the AI era.
Why It's Important?
The introduction of GDI as a measure highlights the growing importance of AI resources in determining economic power. As AI becomes integral to various sectors, nations with substantial AI infrastructure may gain competitive advantages. This shift could influence investment strategies, with investors prioritizing countries and industries with robust AI capabilities. The U.S.'s dominance in AI resources underscores its leadership in technology, while other regions may need to enhance their AI infrastructure to remain competitive.
