Can AI answer the $3 trillion question?

Sequoia Capital partner David Cahn estimates that the AI industry must generate $3 trillion in revenue by 2026 to justify the massive capital expenditure on data centers and specialized hardware. While hyperscalers like Google, Meta, Microsoft, and Amazon anticipate significant cash flow growth from these investments by 2028, there is a notable gap between current AI company earnings and the required returns. Economic analysts, including Apollo's Torsten Slok, warn that falling token prices and the rise of cheaper, open-weight models could hinder these revenue goals. If these companies fail to meet their projections, it could lead to severe market corrections and potential wider economic instability.

(Source：TechCrunch)