"By 2030, AI companies will need $2 trillion in combined annual revenue to fund the computing power needed to meet projected demand, Bain said in its annual Global Technology Report released Tuesday. Yet their revenue is likely to fall $800 billion short of that mark as efforts to monetize services like ChatGPT trail the spending requirements for data centers and related infrastructure, Bain predicted. The report is set to raise further questions about the AI industry's valuations and business model."
"The increasing popularity of services such as OpenAI's ChatGPT and Google's Gemini, as well as AI efforts by companies across the planet, means demand for computing capacity and energy is rising at a rapid clip. But the savings provided by AI and companies' ability to generate additional revenue from AI is lagging behind that pace. If the current scaling laws hold, AI will increasingly strain supply chains globally, said David Crawford, chairman of Bain's global technology practice."
AI companies are planning massive spending on data centers and related infrastructure while revenue to cover those costs is lagging. A consulting firm estimates AI companies will require $2 trillion in combined annual revenue by 2030 to meet projected computing demand. Revenue is likely to fall about $800 billion short because efforts to monetize services like ChatGPT trail spending requirements. Demand for computing capacity and energy is rising rapidly as new models and services gain popularity. Savings and additional revenue generated by AI are not keeping pace, creating supply-chain and valuation pressures for the industry.
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