New Delhi: Global credit rating agency Moody’s on Wednesday said that even though trade and geopolitical tensions are knocking economies, soaring artificial intelligence or AI demand is outpacing supply. “At a time when cross-border investment is slowing and global trade is fracturing, spending on artificial intelligence (AI) is powering against the current, ” Moody’s Analytics said. In its report, the rating agency also said that developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing. “India’s growing economy and digital talent pool makes it an attractive location for data centre providers and chip production,” it added. It further said that the US share of outbound AI investment outpaces its inbound share, a sign that US tech giants are expanding their global footprint. “Even though trade and geopolitical tensions are knocking economies, soaring AI demand is outpacing supply. To close the gap, global investors are pouring capital into data centres and semiconductor projects,” it said. “The countries like India, Singapore and Malaysia, in particular, are rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing. These markets offer cost advantages, growing demand and supportive policies for tech investment,” it added.
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