AI & Tech
AI Industry Spent 1.4 Trillion With Only 50 Billion in Revenue
Breaking Points
6/25/26: Trump Holds Housing Bill Hostage, Trump Freaks Over War Powers, NSPM-7 Crackdown, AI Hype Debate
"We spent $1.4 trillion on this technology so far as a species, $700 billion of it in the last year. The gross revenues for the whole industry worldwide are $50 billion, which sounds like a lot until you think about how much $1.4 trillion is."
Tech journalist Cory Doctorow revealed the AI industry has spent $1.4 trillion while generating only $50 billion in revenue, making it the most money-losing venture in human history. With assets depreciating on 5-year schedules but being replaced every 2-3 years, the unit economics worsen with each generation. Doctorow argues the spending is driven by tech companies' need to convince Wall Street they can keep growing after saturating their markets.
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Breaking Points