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 1 day ago | report | 2 comments add commentPlease login user_0 1 day 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. reply share report BetterLisa 1 day 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. reply share report
market threads
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
share reportOn 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
share report