IBM CEO Arvind Krishna walked through some napkin math on Big Tech's AI data center spending — and raised some doubts on if it'll prove profitable.
  • IBM’s CEO walked through some napkin math on data centers— and said that there’s “no way” to turn a profit at current costs.
  • “$8 trillion of CapEx means you need roughly $800 billion of profit just to pay for the interest,” Arvind Krishna told “Decoder.”
  • Krishna was skeptical of that current tech would reach AGI, putting the likelihood between 0-1%.
  • AA5B@lemmy.world
    0·
    2 months ago

    IBM doesn’t know how innovation works incorporate America, news at 11.

    Of course the entire investment won’t be recovered. No one expects it to. It’s a race, and to the victor goes the spoils. Most of these efforts will fail spectacularly, but a small handful will succeed spectacularly.

    • a few companies will make huge profits
    • everyone else will have huge tax write offs, offsetting corporate taxes for years
    • the rest of us lose
    • Sal@lemmy.world
      0·
      2 months ago

      That’s great and all, except no one is fucking succeeding. They’re having to resort to revolving money to stay afloat and OpenAI has current debts going at over a 1.5 trillion.