The Digital Press

An investment strategist questions how AI infrastructure spending can ever be justified by current revenue, warning of a massive capital mismatch and potential economic fallout akin to historic financial bubbles.

Why it matters: AI datacenter capex in 2025 is about $400 billion, but revenue is only around $15-$20 billion, a huge gap threatening returns.

The big picture: Rapid tech obsolescence means AI datacenters depreciate in 3-5 years, doubling or tripling revenue needed just to break even.

The stakes: If AI funding collapses like historic railroad or fiber-optic bubbles, it could trigger a national economic crisis with widespread financial panic.

Commenters say: Many note AI’s strategic labor and military importance may justify losses, while others highlight possible overestimation of revenue and warn of a classic bubble scenario.