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IBM CEO Calculates Data-Center Costs Outweigh Returns
8.0
IBM CEO Arvind Krishna said on the "Decoder" podcast that current data-center economics make large-scale AI capex unprofitable at today's costs. He estimated roughly $80 billion per gigawatt, implying about $8 trillion for 100 gigawatts and roughly $800 billion in profit required just to cover interest. Krishna also pegged the chance of reaching AGI without a breakthrough at 0–1%.
Key Points
- 1Calculates $80 billion per gigawatt implies roughly $8 trillion for 100 gigawatts commitments
- 2Warns $8 trillion capex requires about $800 billion profit just to cover interest
- 3Urges investors and engineers to re-evaluate large-scale data-center ROI assumptions and deployment plans
Scoring Rationale
High industry relevance and authoritative source, but primarily opinionated executive estimates without new empirical evidence.
Sources
Public references used for this report.
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