DEPLOYMENT · US
Citi research warns AI model progress outpacing data center infrastructure capacity
Citi's research team flagged a widening gap between frontier AI model capability gains and data center scaling, suggesting training and inference bottlenecks ahead. Implies accelerating capex demands and cloud-provider dependency.
WHY IT MATTERS
Banks planning large-scale LLM deployments (trading, risk, compliance) must front-load GPU/infrastructure investment; vendor lock-in and supply constraints will drive costs and timelines.