The $3 Trillion Question: Who's Writing the Checks? David Cahn, a partner at Sequoia, has spent three years crunching numbers to estimate the cost of investing in AI infrastructure by Silicon Valley titans.
His latest calculation puts the total spending on AI infrastructure at $1. 5 trillion by 2026, with the industry needing to generate $3 trillion in revenue to justify this investment.
Cahn's math is straightforward: he takes Nvidia's reported annual GPU revenue of $50 billion and adds the costs of operating data centers and margins for operators.