Ai Will Be A Lot Less Profitable Than Previous Tech Waves

A human dances in booth at a generative AI art exhibitionNurPhoto/Getty ImagesBig tech is spending $1 trillion on generative AI.Generative AI won't scale as well as old-school software businesses.RBC analysts see GenAI leaving software profit margins 'structurally' lower.Amazon, Microsoft, and Google spent more than $48 billion in the second quarter, mostly on data centers, according to Synergy Research Group.Big tech companies are forecast to spend an eye-watering $1 trillion on this stuff.

Topics:  ;window.addeventlistener(   ,(function(a){if(void 0!==a.data[   amazon   microsoft   synergy research   group   p&l   nvidia   chatgpt   openai   dylan patel   business insider   ai   capital markets   rbc   genai   lot   profitable   tech   software   margins   analysts   revenue   generative   companies   scale   costs   gross   million   dollars   expensive   massive   cloud   big   huge   cost   company   measure   customers   bigger   traditionally   requires   estimated   spend   models   centers   trillion   structurally   on-premise   expect   absolute   model   run   time   wrote   chips   step   investors   develop   margin   
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