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- $1B USD on AI app Spends
$1B USD on AI app Spends
& Mapping Biggest Data Centers in the World
AI Apps Surge: Over $1 Billion in Consumer Spending in 2024
The year 2024 witnessed a remarkable surge in consumer spending on AI applications, with the total reaching nearly $1.1 billion, marking a 200% increase from the previous year. This growth was part of a broader trend that saw global consumer spending on apps rise to $150 billion, a 13% increase from 2023. The popularity of AI apps was not just a fleeting phenomenon; consumers ending up spending approximately 7.7 Billion hours using these applications, and AI-related apps were downloaded 17 Billion times throughout the year.
Notable AI platforms like ChatGPT demonstrated unprecedented user acquisition rates, surpassing 50 million monthly active users faster than popular services such as Temu, Disney+, and YouTube Music. This rapid adoption suggests a growing and sustained appetite for AI-powered applications and features. If the current growth trajectory continues, AI apps could potentially break into the top 10 categories by consumer spending within a year.
DeepSeek's AI Breakthrough Sparks Debate in Silicon Valley
Chinese AI company DeepSeek has sent shockwaves through the tech industry with the release of its open-source reasoning model R1. The model has reportedly matched or surpassed OpenAI's o1 model on certain AI benchmarks, while costing only $5.6 million to train - a fraction of what leading American companies spend. This achievement is particularly noteworthy given the U.S. sanctions prohibiting the sale of advanced chips to Chinese companies, showcasing DeepSeek's innovative approach to resource efficiency.
The announcement has sparked diverse reactions from tech leaders and industry experts. While some, like venture capitalist Marc Andreessen, hail it as a groundbreaking achievement, others view it with skepticism. The debate encompasses various perspectives, including potential impacts on U.S. equity markets, the future of AI development costs, and the role of open-source models in advancing AI technology. Amidst the controversy, DeepSeek's AI assistant has surged to become the top free app in the Apple App Store, indicating strong consumer interest in the product.
Mapping the Most Data Centers & Biggest Data Centre Markets by Region
Image: Voronoi
The U.S. accounts for 46% of the world's data centers, making it the undisputed leader in computing. Home to many of the world’s top tech giants like Microsoft and Amazon, the U.S. has invested billions in digital infrastructure and artificial intelligence. However, this immense computing power comes at a cost: rising energy consumption. For instance, processing an average ChatGPT query requires 10 times more electricity than a standard Google search. According to Goldman Sachs Research, data centers are set to become the largest driver of U.S. electricity demand. By 2030, data centers are projected to account for 8% of total electricity consumption, up from 3% in 2022. Here is a map showing the 40 biggest data center markets by electricity consumption in MW.
With World’s Second Largest Economy - China left to build its infrastructure on its own, due to its ongoing trade war with the U.S.', China must now design and build its own chips. According to CNBC, manufacturing chips is a greater challenge than designing them, this is because China has no domestic company capable of manufacturing leading edge semiconductors. This type of expertise can take years to develop. Furthermore, the equipment needed to make these chips comes exclusively from the Netherlands’ ASML, which has also been banned from exporting to China.
Despite that, China has been making significant strides in developing its own data center infrastructure, driven by government initiatives, increasing demand for digital services, and a focus on technological self-reliance. The Chinese government has been actively promoting data center development through various programs such as: "East Data, West Computing" Project: Launched in 2022, this initiative aims to build eight major computing hubs across China, channeling data processing from the eastern regions to the western parts of the country. It is pushing for innovation in data center technology by launching a Underwater Data Centers Project which is aimed at constructing first of its kind commercial underwater data center in Hainan, aiming to reduce energy consumption through seawater cooling.