TechFlow reports, on July 16, a report from research firm Exponential View shows that revenue from artificial intelligence (AI) has reached a tipping point, indicating that investing hundreds of billions of dollars in this field may be economically sustainable for tech companies.
The report shows that global AI sales revenue from hyperscale cloud providers and emerging cloud providers reached $25 billion, exceeding the industry's estimated depreciation costs of $21 billion related to data center and chip investments for the second consecutive quarter. This milestone indicates that AI companies' revenue is beginning to cover their capital expenditure costs, but profit margins remain thin.
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