""It takes about $80 billion to fill up a one-gigawatt data center," he said. "That's today's number. If one company is going to commit 20-30 gigawatts, that's $1.5 trillion of [capital expenditure]." Considering the "total commits" of "chasing AGI" amounts to 100 gigawatts, he reasoned, that's "$8 trillion of [capital expenditure]." "It's my view that there's no way you're going to get a return on that because $8 trillion of [capital expenditure] means you need roughly $800 billion of profit just to pay for the interest," he concluded."
"AI companies are continuing to pour ungodly amounts of money into building out data centers, in an enormous bet that both analysts and tech leaders warn may not pay off for many years to come - if it ever does. OpenAI most recently committed to spending well over a trillion dollars before the end of the decade as it continues to burn oodles of cash each quarter, enormous losses that are having investors asking some hard questions."
AI companies are investing massive sums to build data centers, wagering on future returns from advanced AI and AGI development. OpenAI committed well over a trillion dollars before the end of the decade while burning large quarterly cash and reporting enormous losses. IBM CEO Arvind Krishna estimates about $80 billion per one-gigawatt data center and calculates 100 gigawatts chasing AGI would imply roughly $8 trillion of capital expenditure. That scale would require roughly $800 billion of profit just to cover interest, making a return unlikely. Analysts and banks project prolonged unprofitability and question the sustainability of current valuations.
Read at Futurism
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