The AI math isn't mathing as infrastructure spending forecast to outstrip expected revenue

AI services are unlikely to deliver enough revenue to cover the expected capital expenditure going into IT infrastructure between now and 2030, and it looks like neocloud operators will largely bow out or be bought out. This is the conclusion from Gartner, which has added up the anticipated investments in AI datacenters over the next several years, estimated the revenue that can be expected from AI-driven applications over the same period, and found the numbers come up short. Gartner's data comes from a report, "Prepare for AI Market Consolidation: Capital Write-Downs Could Exceed $4 Trillion by 2032," which concludes that AI will not generate enough sales to profitably cover all of the planned AI capital spending before 2032 at the earliest. But forecasts typically focus on the end of the decade, so it ran the numbers for 2030 as well. …