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Big Tech needs to generate $600 billion in annual revenue to justify AI hardware expenditure

Analyst at Sequoia Capital, David Cahn, noted last September that there was a very significant gap between the revenue expectations implied by the AI infrastructure build-out and...

Big Tech companies have been plowing huge sums to build out the necessary infrastructure to meet what they perceive demand will be for these products in the coming years. Furthermore Cahn is projecting that AI revenue required for payback will eventually reach $100 billion, pointing to Nvidia's recently announced B100 chip, which will have 2.5x better performance for only 25% more cost. "Founders and company builders will continue to build in AI – and they will be more likely to succeed, because they will benefit both from lower costs and from learnings accrued during this period of experimentation."

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