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Technology

Marco Quiroz-Gutierrez

IBM CEO warns there’s ‘no way’ hyperscalers like Google and Amazon will be able to turn a profit at the rate of their data center spending

Arvind Krishna Amazon Google IBM Goldman Sachs

(Credit: Sajjad Hussain—AFP)

While giant tech companies like Google and Amazon tout the billions they’re pouring into AI infrastructure, IBM’s CEO doubts their bets will pay off like they think.

Arvind Krishna, who has been at the helm of the legacy tech company since 2020, said even a simple calculation reveals there is “no way” tech companies’ massive data center investments make sense. This is in part because data centers require huge amounts of energy and investment, Krishna said on the Decoder podcast.

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