""$8 trillion of CapEx means you need roughly $800 billion of profit just to pay for the interest," Arvind Krishna told "Decoder.""
""Okay, that's today's number. So, if you are going to commit 20 to 30 gigawatts, that's one company, that's $1.5 trillion of capex," he said."
""You've got to use it all in five years because at that point, you've got to throw it away and refill it," he said."
""If I look at the total commits in the world in this space, in chasing AGI, it seems to be like 100 gigawatts with these announcements," Krishna said."
AI companies are spending billions on data centers to chase AGI, driving a surge in capacity and infrastructure builds. Filling a one-gigawatt data center costs about $80 billion at current prices. Committing 20–30 gigawatts would cost roughly $1.5 trillion for a single company. Global announcements suggest roughly 100 gigawatts of commitments, implying about $8 trillion of total capex. $8 trillion of capex would require roughly $800 billion of profit just to cover interest. AI chips depreciate quickly and must be replaced about every five years, increasing ongoing replacement costs. Current costs make profitable returns on that scale unlikely, and the likelihood of current tech reaching AGI is estimated between 0–1%.
Read at Business Insider
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