market threads latest | past | mail | submit IBM CEO says there is no way AI data centers will pay off (www.businessinsider.com) 7 points by user_0 2 months ago | report | 2 comments add commentPlease login user_0 2 months ago We finally have a CEO that can do napkin math. "$8 trillion of CapEx means you need roughly $800 billion of profit just to pay for the interest." And recognizing the depreciation problem. "You've got to use it all in five years because at that point, you've got to throw it away and refill it." Call me crazy but this IBM CEO is fresh breath of reality. share report reply BetterLisa 2 months ago On the plus side all these data centers will be easy to repurpose back to general compute one day. Maybe in a hardware generation or two. And the excess power generation will drive down energy costs. share report reply
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We finally have a CEO that can do napkin math.
"$8 trillion of CapEx means you need roughly $800 billion of profit just to pay for the interest."
And recognizing the depreciation problem.
"You've got to use it all in five years because at that point, you've got to throw it away and refill it."
Call me crazy but this IBM CEO is fresh breath of reality.
reply
On the plus side all these data centers will be easy to repurpose back to general compute one day. Maybe in a hardware generation or two. And the excess power generation will drive down energy costs.
reply