Generate $6 trillion in annual revenue or face a major collapse — AI data center costs are doubling every 12…
- The AI industry could need $6 trillion in yearly revenue, new report claims
- New AI products would need to generate trillions in commercial value
- Search, advertising, and autonomous systems could drive most future revenue
AI infrastructure spending is racing ahead, and by 2031 the industry will need to find far more commercial value to justify the bill, new research has claimed.
Bain & Company estimates yearly spending on facilities, processors, memory and networking could climb to $1.5 trillion by 2031 alone.
To keep that investment going, the industry would need roughly $6 trillion in annual revenue, assuming infrastructure swallows about 25% of sales every year.
Where would all that revenue come from?
Bain calls that 25% assumption bold yet fair, since it matches what cloud computing providers have spent on infrastructure in earlier years.
Even so, the math leaves AI businesses needing far more commercial activity than their current products...
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