CNBCยท2025-11-04 05:52Core Insights - HSBC CEO Georges Elhedery highlighted a mismatch between the massive investments in artificial intelligence (AI) and the current revenue generation capabilities of companies [1][2] - The global data center capacity is projected to grow six times over the next five years, with an estimated cost of $3 trillion by the end of 2028 for data centers and their hardware [2] - McKinsey forecasts that by 2030, capital expenditure for AI-capable data centers will reach $5.2 trillion, compared to $1.5 trillion for traditional IT applications [3] Investment Trends - Elhedery noted that consumers are not yet prepared to pay for the advancements in AI, and businesses are likely to be cautious as productivity benefits will take time to materialize [3][4] - Big Tech firms, including Alphabet, Meta, Microsoft, and Amazon, have raised their capital expenditure guidance, collectively expecting to exceed $380 billion this year [4] - OpenAI has announced approximately $1 trillion in infrastructure deals with partners like Nvidia, Oracle, and Broadcom, indicating significant investment in the AI sector [5] Long-term Outlook - William Ford, CEO of General Atlantic, emphasized that while AI will create new industries and applications, the productivity benefits will be realized over a longer time frame, potentially 10 to 20 years [4] - Ford warned of potential misallocation of capital and overvaluation in the initial stages of AI investment, making it challenging to identify successful companies [5] - The AI sector is expected to be capital-intensive initially, requiring upfront investment for future opportunities [5][6]