Thank you for realizing what most AI fans fails to realize!
60 billion is a pretty reasonable ballpark for what AI companies are making. It’s closer to 50b annualized (so 35b for real) in 2025 , but same ballpark. What they’re actually SPENDING is an entirely different number. The 600 billion is a quick-and-dirty extrapolation from this sum of capital expenditure by the 5 biggest AI companies. Note that OpenAI direct spending isn’t in there, because they’re not reporting it, but OpenAI is mostly Microsoft.
That brings us to a quick 600b in 2 years in expenses, which are climbing, and some 50b in income, with absolutely zero profit. And that’s a problem, because all that capex is not infrastructure, it’s mostly consumable GPUs that will be worn out in a few years and insane salaries.
Seems reasonable. If the price I have to pay is to step over my fellow citizens who happen to be experiencing an involuntary outdoor lifestyle, that’s fine.
Thank you for realizing what most AI fans fails to realize!
60 billion is a pretty reasonable ballpark for what AI companies are making. It’s closer to 50b annualized (so 35b for real) in 2025 , but same ballpark. What they’re actually SPENDING is an entirely different number. The 600 billion is a quick-and-dirty extrapolation from this sum of capital expenditure by the 5 biggest AI companies. Note that OpenAI direct spending isn’t in there, because they’re not reporting it, but OpenAI is mostly Microsoft.
Some adding up from the WSJ top-4 here for 2024: https://www.wsj.com/tech/ai/tech-giants-double-down-on-their-massive-ai-spending-b3040b33
130 billion from microsoft: https://www.cfodive.com/news/microsoft-capex-grow-slower-rate-cfo-ai/746947/
75 billion from alphabet here: https://www.cnbc.com/2025/02/04/alphabet-expects-to-invest-about-75-billion-in-capex-in-2025.html
72 billion from meta here: https://fortune.com/article/meta-q1-earnings-revenue-profit-beat-ai-capex-raise
11 b from tesla: https://www.reuters.com/business/autos-transportation/tesla-expects-capital-expenditure-exceed-11-bln-2026-2027-2025-01-30
And the same from apple: https://finbox.com/NASDAQGS:AAPL/explorer/capex/
That brings us to a quick 600b in 2 years in expenses, which are climbing, and some 50b in income, with absolutely zero profit. And that’s a problem, because all that capex is not infrastructure, it’s mostly consumable GPUs that will be worn out in a few years and insane salaries.
Seems reasonable. If the price I have to pay is to step over my fellow citizens who happen to be experiencing an involuntary outdoor lifestyle, that’s fine.