Profitability matters most to me now. Rapid revenue growth proves there is genuine demand for AI, but the harder question is whether that demand can generate attractive returns after chips, data centres, energy and depreciation costs.
Anthropic’s growth is impressive, while Meta’s enormous infrastructure commitment shows just how capital-intensive this race has become. I would therefore watch free cash flow and operating margins alongside AI revenue growth.
For Big Tech, strong Azure, Google Cloud and AWS growth would be encouraging, but even better would be evidence that incremental AI revenue is growing faster than the associated infrastructure costs.
Long-term demand is necessary, revenue growth validates it, but sustainable profitability ultimately determines whether today’s AI spending creates shareholder value or simply creates a very expensive arms race. 🐯
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