IBM CEO Warns There’s ‘No Way’ Hyperscalers Like Google and Amazon Will Be Able to Turn a Profit at the Rate of Their Data Center Spending

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AI companies are investing billions of yen in data centers, which are essential infrastructure for AI. However, IBM CEO Arvind Krishna warned that at current costs, it is "impossible" to make a profit from these investments.

Developpez.com

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IBM CEO: "It's impossible for the billions injected into IA data centres to be profitable because of the current costs of infrastructure." He adds that the AGI is not within reachMore and more stakeholders are questioning the economic viability of investments in IA data centres. JP Morgan estimates that it will take about $650 billion in annual revenues to achieve a yield of only 10% on the development of the IA. IBM CEO,...

braziljournal.com

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IBM's CEO, Arvind Krishna, has demonstrated deep cecicism with regard to the possibility of Big Techs having a huge investment in the AI infrastructure at current costs. According to executive calculations, something like $80 billion is needed today to build a central date with 1 gigawatt capacity. The ads made so far account for a 100 gigawattts – reaching US$ 8 trillion in cash. “In my opinion, there is no way to get back this,” Krishna told T…