IBM CEO Arvind Krishna used an appearance on The Verge’s Decoder podcast to question whether the capital spending now underway in pursuit of AGI can ever pay for itself. Krishna said today’s figures for constructing and populating large AI data centers place the industry on a trajectory where roughly $8 trillion of cumulative commitments would require around $800 billion of annual profit simply to service the cost of capital.
The claim was tied directly to assumptions about current hardware, its depreciation, and energy, rather than any solid long-term forecasts, but it comes at a time when we’ve seen several companies one-upping one another with unprecedented, multi-year infrastructure projects.
