AI as the 21st century utility?
Accel's Globalscape report is worth a look.
There are a couple slides that really caught my eye on the revenue and GDP growth requirements to payback the estimated $3.1tn in capex that's projected to fuel AI.
The 5-year compute and infrastructure depreciation lines strike me as a bit optimistic, notwithstanding the prospects for a 'value cascade'.
Smells a bit like an accounting life vs useful life convention -- particularly given the high likelihood of rapid obsolescence.
So, if we run the numbers with a 3-year depreciation, I calculate a further incremental revenue requirement of $673bn. (Check my math pls)
That $673bn figure is almost 3x Microsoft's 2024 revenues.
$3.7tn is a lot of granola.
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