IBM CEO Says "No Way" Spending Trillions On Data Centers Will Pay Off

For much of the past year, when most AI bulls were too busy to be bothered with doing the simple math on what a full AI cycle would cost in terms of both data center capex and energy outlays, we warned that there is simply no way that this is feasible as the upfront costs - in the trillions assuming existing technologies - would never be covered by future revenue streams (especially if AI never makes it far beyond junior's $19.95 monthly chatbot subscription so someone gets to write his college essays).

More recently, JPMorgan joined the fray when it calculated that not only would it take over $5 trillion to fund the AI cycle through 2030, but that the government (i.e. taxpayers) would have to foot about $1.4 trillion of the bill, which also includes making the AI billionaires even richer (see ""Astonishingly Large Numbers": It Will Take $5 Trillion To Fund The AI Cycle, And The US Government Is On The Hook For Over $1 Trillion")