AI Revenue Reaches $250B, Exceeds Data Center Depreciation Costs for Second Consecutive Quarter

According to research by Exponential View, artificial intelligence revenue reached a critical threshold for the second consecutive quarter, with global cloud service providers generating $250 billion in AI sales while depreciation costs on data center and chip investments totaled $210 billion (excluding China). The milestone indicates tech companies' massive investments in AI infrastructure may prove economically sustainable. However, depreciation consumes over two-thirds of AI revenue, leaving limited margin to cover power, labor, and financing costs. "The economics work for now, but there is little room for error," the report states.
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