There's a Stunning Financial Problem With AI Data Centers. "AI datacenters to be built in 2025 will suffer $40 billion of annual depreciation, while generating somewhere between $15 and $20 billion of revenue." | AI News Digest
A recent analysis reveals a troubling financial outlook for AI data centers, predicting $40 billion in annual depreciation against revenues of only $15 to $20 billion. As investments in AI surge, the economic viability of these data centers is called into question. Harris Kupperman, a financial expert, highlights the rapid obsolescence of technology and the high costs of maintenance as key issues. He warns that without significant revenue growth, these centers may struggle to achieve profitability. The analysis suggests that the current trajectory of AI spending could lead to a financial crisis in the sector.
