Thread

AI needs $6T in annual revenue to justify data centre boom

222 points · 335 comments · Betelbuddy

bunderbunder · 1790711630 · focus · HN ↗
They talk a bit about where the AI companies are supposed to get their revenue from. I’d like to see these analyses go a step further and talk about how those AI customers are supposed to come up with that money as well.
For example, the article suggests $1T from enterprise productivity tooling. A quick Google suggests the global enterprise productivity tooling market is only worth about $0.1T right now.
Do we really expect all the world’s corporations to suddenly up their annual spend by 1,000% on average? Why?
1. HDThoreaun · 1790714039 · focus · HN ↗
  MSFT office suite alone sells $.1 trillion a year
  1. pessimizer · 1790722012 · focus · HN ↗
    And will continue to. AI won't reduce those costs by a penny.
    As far as I can tell, it won't even accelerate a competitor who could bite off a piece of that. As far as I can tell, it won't even make the suite itself better, just buggier. Maybe MS themselves could fire %15 to %30 of the people who work on Office, but these companies have been vastly overhiring for years; they could have done that 10 years ago and they didn't.

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