Falling AI Costs Could Unlock New Industries and Reshape Global Investment, Says Terra Invest’s Krishan Rattan

The rapid decline in artificial intelligence deployment costs could open new avenues for industrial development infrastructure investment and capital market participation according to Krishan Rattan Founding Partner of global investment firm Terra InvestRattan believes that as AI becomes more affordable its economic impact will extend beyond improving business productivity Lower operating costs could enable companies to undertake research engineering and manufacturing activities that were previously too expensive or commercially unviableThe shift could influence how industries evolve and where investment capital is directedAccording to Stanford Universitys 2025 AI Index the cost of operating AI systems at approximately GPT 35 level capability declined more than 280 fold between November 2022 and October 2024 The reduction illustrates how rapidly advanced computational capabilities are becoming more accessibleRattan observes that affordable AI could allow engineering teams to evaluate thousands of design possibilities instead of a limited number while research organisations could explore scientific hypotheses that previously required substantial financial resourcesSuch developments may encourage the emergence of companies combining software biotechnology automated laboratories and manufacturing within a single business modelFor investors these businesses could present opportunities that extend beyond conventional technology sector classificationsGrowing AI Adoption Could Accelerate Energy DemandThe expansion of AI is also expected to increase demand for electricity and computing infrastructureThe International Energy Agencys 2025 Energy and AI report estimates that global data centre electricity consumption could rise from approximately 415 terawatt hours in 2024 to around 945 terawatt hours by 2030 under its base case scenarioRattan believes that access to reliable electricity efficient transmission networks cooling infrastructure and suitable land will increasingly influence the location of major AI facilitiesHe identifies the Gulf region as a potential beneficiary of this transition given its energy resources access to capital and experience in developing large scale infrastructureHowever electricity pricing alone may not determine competitiveness Grid connectivity construction timelines energy storage and operational reliability could play equally important rolesCapital Markets Could Support the Next Phase of AI GrowthRattan also expects AI driven industrial development to create businesses requiring substantial long term financingCompanies integrating computational systems with laboratories specialised equipment and physical manufacturing may have capital requirements closer to those of industrial enterprises than traditional software companiesAs these businesses expand public capital markets could provide an important financing route allowing companies to fund infrastructure and enabling wider investor participationThe development could also require investors to reconsider traditional sector classifications when evaluating emerging enterprisesRattan believes the next phase of AI led economic growth may increasingly depend on the ability to combine technological capability with physical infrastructure reliable energy and access to financeAbout Terra InvestTerra Invest Terra Vision Investments LLC is a global investment firm operating across AI financial services healthcare green energy and infrastructure in India and the Middle East The firm works at the intersection of capital public policy academia and governance with offices in London Dubai Abu Dhabi Miami and SingaporeFor more insights visit httpsterrainvestcominsights

Falling AI Costs Could Unlock New Industries and Reshape Global Investment, Says Terra Invest’s Krishan Rattan

Other Articles

Mid-Day Fast

Home / Buzzfeed / Article / Falling AI Costs Could Unlock New Industries and Reshape Global Investment, Says Terra Invest’s Krishan Rattan

Falling AI Costs Could Unlock New Industries and Reshape Global Investment, Says Terra Invest’s Krishan Rattan

Other Articles

Mid-Day Fast