New Delhi, Oct. 5 -- The massive investment in artificial intelligence (AI) is shifting market leadership towards hardware, infrastructure and other capital-intensive businesses, as rising spending on AI infrastructure continues to drive demand beyond the technology sector, according to a report by venture capital firm Andreessen Horowitz (A16Z).

The report said the shift marks a change after more than a decade of dominance by software and other capital-light businesses.

AI infrastructure spending has triggered a multi-trillion-dollar capital expenditure cycle, driving strong demand for GPUs, high-bandwidth memory, power equipment, skilled workers and copper. In several areas, demand is outpacing available supply.

"We've entered a new ...