The $8 Trillion AI Mirage: IBM Says The Math Just Doesn't Work

Benzinga_recent_news12-03

Everyone on Wall Street is busy celebrating the AI supercycle — until you try the math. This week, IBM (NYSE:IBM) CEO Arvind Krishna dropped a number so large it could stop the AI party cold. At today...

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This week, IBM (NYSE:IBM) CEO Arvind Krishna dropped a number so large it could stop the AI party cold.\nAt today...</p>\n\n<a href=\"https://www.benzinga.com/markets/tech/25/12/49172173/the-8-trillion-ai-mirage-ibm-says-the-math-just-doesnt-work\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NVDU","symbol_name":"2倍做多NVDA ETF-Direxion","start_time":0,"source_url":"https://www.benzinga.com/markets/tech/25/12/49172173/the-8-trillion-ai-mirage-ibm-says-the-math-just-doesnt-work","article_id":"2588194069","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/12/02/Milan--Italy--July-29--2024---Sign-Of-Ib.jpeg?optimize=medium&dpr=2&auto=webp&width=120"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/markets/tech/25/12/49172173/the-8-trillion-ai-mirage-ibm-says-the-math-just-doesnt-work","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2588194069","pubTimestamp":1764709140,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"IBM CEO notes that AI data center economics are at risk as companies pour trillions into unprofitable infrastructure.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NVDU":"2倍做多NVDA ETF-Direxion","3NVD.UK":"LS 3X NVIDIA","QID":"两倍做空纳斯达克指数ETF-ProShares","IE00BQXX3D17.EUR":"GUINNESS GLOBAL INNOVATORS \"C\" (EUR) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU2211815571.USD":"ALLIANZ POSITIVE CHANGE \"AT\" (USD) ACC","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","USAW.SI":"AMZN 3xLongSG261006","NVDX":"2倍做多NVDA ETF-T-Rex","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","LU1923622291.USD":"Natixis Thematics Safety R/A USD","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","NVIW.SI":"NVDA 3xLongSG261006","NVD":"2倍做空NVDA ETF-GraniteShares","NVDY":"NVDA期权收益策略ETF-YieldMax","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","AI":"C3.ai, Inc.","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","TQQQ":"纳指三倍做多ETF","LU1989773731.SGD":"CPR Invest - Education A2 Acc SGD-H","LU1861127337.USD":"ALLIANZ GLOBAL MULTI ASSET SUSTAINABILITY BALANCED \"AMG\" (USD) INC","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","NVDD":"1倍做空NVDA ETF-Direxion","PSQ":"做空纳斯达克100指数ETF-ProShares",".IXIC":"NASDAQ Composite","SQQQ":"纳指三倍做空ETF","NVD2.UK":"2X NVIDIA ETP","SNVD.UK":"LS -1X NVIDIA","2NVD.UK":"2X NVIDIA ETP","USJW.SI":"ALPHAB 3xLongSG261006","QLD":"2倍做多纳斯达克100指数ETF-ProShares","NVD3.UK":"LS 3X NVIDIA","NVDS.UK":"LS -1X NVIDIA","TSYW.SI":"TESLA 3xLongSG261006","NVDS":"1.5倍做空NVDA ETF-Tradr","IBM":"IBM"},"translate_title":"价值8万亿美元的人工智能幻影：IBM称数学不起作用","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SNVD.UK":0.6,"QID":0.6,"NVIW.SI":0.6,"IBM":1.5,"NVD2.UK":0.6,"NVDU":0.6,"PSQ":0.6,"QLD":0.6,"NVDD":0.6,"2NVD.UK":0.6,"NVDS":0.6,"USAW.SI":0.6,"NVD":0.6,"USJW.SI":0.6,"NVDY":0.6,"MNQmain":0.6,"NVDX":0.6,"NVDS.UK":0.6,"3NVD.UK":0.6,"TSYW.SI":0.6,"SQQQ":0.6,".IXIC":0.7,"NVD3.UK":0.6,"TQQQ":0.6,"AI":0.9,"NQmain":0.6},"content_text":"Everyone on Wall Street is busy celebrating the AI supercycle — until you try the math. This week, IBM (NYSE:IBM) CEO Arvind Krishna dropped a number so large it could stop the AI party cold.\nAt today's costs, he told Decoder, it takes roughly $80 billion to build and fully equip a 1-gigawatt AI data center. And with nearly 100 gigawatts of hyperscale capacity already announced across the industry, that implies around $8 trillion in capital spending. \nHis conclusion was blunt: \"There is no way you're going to get a return on that,\" arguing companies would need about $800 billion in profit just to service interest on that scale of investment.\nThat warning lands right as Big Tech is flexing spending like price doesn't matter. Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOG) and Meta Platforms Inc (NASDAQ:META) are pouring tens of billions into compute, GPUs, land, power and cooling in what increasingly looks like an existential race to prove dominance in AI — not necessarily a profitable one. Nvidia Corp's (NASDAQ:NVDA) revenue projections assume that every hyperscaler keeps building non-stop; the market caps of chipmakers and equipment suppliers depend on that narrative holding.\nWhat Krishna is suggesting is a far darker possibility: the economics simply don't support the ambition.\nRead Also: Amazon’s $150 Billion AI Capex Surge Could Force Its First Big Bond Deal In Years\nIf capex continues to balloon while monetization remains vague, someone is going to hit the brakes. \nEnterprises haven't proven that generative AI can deliver ROI at scale, inference costs are exploding, and power shortages are already delaying deployments in multiple markets. \nYou don't spend $8 trillion because you want to; you spend it because you're terrified of losing the race.\nRight now, investor psychology is driven by FOMO, not fundamentals. The first hyperscaler to slow spending could trigger a wider rethink about AI infrastructure profitability — and expose how much of this build-out is narrative rather than economics.\nBut at some point, CFOs would start asking simple questions with ugly answers: How fast can AI revenue scale? Who pays for inference? What if enterprise adoption is slower than promised? What if power constraints halt deployment?\nIf Krishna is right, the AI supercycle ends not with a crash in demand, but with a financial choke point — where the first company to pause spending triggers a broader reassessment of what all this infrastructure is really worth.\nThe AI revolution may be real. But IBM's math suggests the capital model may not be. And the market hasn't priced in the risk that the AI gold rush hits a wall long before returns arrive.\nRead Next: \nPhoto: Shutterstock","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.9","shortVersion":"4.35.9","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2588194069","isCrawlerRequest":true}