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yeah 50b seems way too low. I've heard of so many companies dipping their toes in AI. There is no way industry revenue is that low.
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- Thread starter Furious
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yeah 50b seems way too low. I've heard of so many companies dipping their toes in AI. There is no way industry revenue is that low.
Khane
Got something right about marriage
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There are very few companies "dipping their toes" in actual AI.
What you're hearing, is companies lying about being AI companies and using nebulous terminology to package old fashioned software and services as "AI". The industry is full of snake oil.
What you're hearing, is companies lying about being AI companies and using nebulous terminology to package old fashioned software and services as "AI". The industry is full of snake oil.
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Hateyou
Not Great, Not Terrible
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M Power
Bronze Knight of the Realm
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There is a lot of doomer bullshit on X from these types of psuedo analysts. Also, the guy has "crypto" in his username so I would guess he's incredibly biased and a moron.
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fris
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It's fucking retarded and has me russeled
Somes $450b spend is someone else's revenue. Like, wtf. How is this guy measuring "ai revenue" ?
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My guess is just looking at capex from publicly traded companies and estimating for the private ones that he knows using multiple or some other back of the envelop estimation technique.
Sheriff Cad
scientia potentia est
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My guess is he's distinguishing between investment in future AI capabilities (the capex spends now on compute) and revenue from selling AI services.
The revenue from selling AI services is likely significantly lagging the investments right now, I think thats the distinction they're drawing.
Whether those numbers are right is an entirely different thing but it's not surprising the revenue number is lower right now.
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Sheriff Cad
scientia potentia est
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Thats hilarious, I was a consultant for them when I worked for Accenture back in the day. Honestly don't even remember what they did, it was Java data transformations and they had a kickass warehouse office in the old West End in Dallas. Haven't heard that name in forever.
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That's a fair point. You probably count 100% of ASW. Maybe 20%. It does get used for ai workloads. My buddy who works for an aerospace company here, uses ASW for running AI workloads. They have the hardware, and many companies are already have contracts with them.
fris
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not all AI is in teh cloud. there's also on prem. even down to "microsoft copilot pcs". Dell and HP sell AI servers that companies use to run local AI.
Haus
I am Big Balls!
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I think two things are in play with the low "AI Revenue" estimate.
First, I wouldn't put it past him to just be calling out AI revenue generated for the first half of the year.
Second, a lot of the "What about all the AI infrastructure outlays and Capex expenditures" aren't actual AI revenue. It's the "picks and shovels" category of infrastructure, hardware, and hyperscaler build outs. So most of that incestuous circle of spending will be counted as revenue on that front.
The AI companies themselves are in the first phases of the "Time to stop giving out the goodies for free/cheap" part of the game. I spoke with an org that's moving to only give Claude Code access to their senior developers because of how many junior developers are doing their entire job with it and the Claude token bills are getting insane, so they're looking at a subset of my company's technology to control/restrict what AI tools different people in the org can access.
First, I wouldn't put it past him to just be calling out AI revenue generated for the first half of the year.
Second, a lot of the "What about all the AI infrastructure outlays and Capex expenditures" aren't actual AI revenue. It's the "picks and shovels" category of infrastructure, hardware, and hyperscaler build outs. So most of that incestuous circle of spending will be counted as revenue on that front.
The AI companies themselves are in the first phases of the "Time to stop giving out the goodies for free/cheap" part of the game. I spoke with an org that's moving to only give Claude Code access to their senior developers because of how many junior developers are doing their entire job with it and the Claude token bills are getting insane, so they're looking at a subset of my company's technology to control/restrict what AI tools different people in the org can access.
Khane
Got something right about marriage
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AI isn't "in the cloud". A "copilot pc" is still connected to the internet.
This all seems like marketing and branding shenanigans.