World

Artificial intelligence buildout faces a revenue test

By /

Never has so much cash flowed into a new technology as is pouring into artificial intelligence, eclipsing sums spent on railways or the internet, Reuters reported from London in a story The Manila Times published on 5 October 2026.

Cumulative spending globally on data centers alone could top $30 trillion by 2050, according to a PwC projection cited in the report, almost matching the value of outstanding US Treasuries. PwC said the total “dwarfs” railroad and dotcom spending even after inflation adjustment.

Artificial intelligence revenue still has to catch up

Anthropic plans to spend $518 billion in coming years, according to an IPO prospectus seen by Reuters, more than 100 times its 2025 revenue. The report said its backers argue the technology will be more transformational than steam engines. Economists said the projections assume broad productivity gains and future profits with little evidence so far that they will arrive.

JP Morgan wrote in August that broad-based US productivity gains “remain elusive”. A Bain & Company study said gains from existing markets would not justify current outlays and that “entirely new markets must emerge to close the funding gap”. Bain said US hyperscalers, naming Google, Amazon and Microsoft, and others in the race needed more than $4.2 trillion of new revenue in the next five years. The study, published last month, asked whether applications would “arrive in time to pay for it”.

JP Morgan estimated that justifying Nvidia’s valuation would require US productivity gains of 3 percent to 5 percent a year for the next 10 years, against a Congressional Budget Office baseline of 1.75 percent. Columbia Business School economist Stijn Van Nieuwerburgh estimated US investment of about $9 trillion from 2025 to 2032, equal to 3.2 percent of GDP a year, and about $3.55 trillion in annual sector revenue by 2032 for a 10 percent return. He wrote that leveraged funding means “a relatively modest deterioration in demand, delays, or asset values can therefore produce much larger losses”.

Source: The Manila Times (Reuters)

Share

Today’s News 5 Oct 2026 · 17 stories

  1. Google topped a tech and AI trend list on 4 October1Google topped a tech and AI trend list on 4 OctoberOct 5, 2026
  2. Flipkart adds warehouse space ahead of festival orders2Flipkart adds warehouse space ahead of festival ordersOct 5, 2026
  3. Uruguay footballers try cricket at Kolkata’s Eden Gardens3Uruguay footballers try cricket at Kolkata’s Eden GardensOct 5, 2026
  4. India finishes fourth at Asian Games 2026 with 85 medals4India finishes fourth at Asian Games 2026 with 85 medalsOct 5, 2026
  5. Brazil beat India 4-0 on Selecao’s first Kolkata visit5Brazil beat India 4-0 on Selecao’s first Kolkata visitOct 5, 2026
  6. Supreme Court will hear pleas on CEC Gyanesh Kumar6Supreme Court will hear pleas on CEC Gyanesh KumarOct 5, 2026
  7. 84 percent of Nifty 50 stocks trade under the 200-DMA784 percent of Nifty 50 stocks trade under the 200-DMAOct 5, 2026
  8. Supreme Court limits the death penalty to no-reform cases8Supreme Court limits the death penalty to no-reform casesOct 5, 2026
  9. Two Great Indian Bustards released into Jaisalmer wild9Two Great Indian Bustards released into Jaisalmer wildOct 5, 2026
  10. Gehlot asks Rajasthan to plan for drought-like stress10Gehlot asks Rajasthan to plan for drought-like stressOct 5, 2026
  11. Rajasthan heat hits 41C while dry weather continues11Rajasthan heat hits 41C while dry weather continuesOct 5, 2026
  12. Jaipur’s Kalam Academy expels teacher after assault12Jaipur’s Kalam Academy expels teacher after assaultOct 5, 2026
  13. Jaishankar meets US Indo-Pacific commander Samuel Paparo13Jaishankar meets US Indo-Pacific commander Samuel PaparoOct 5, 2026
  14. Google unveils Gemini 4 Argon for long-running work14Google unveils Gemini 4 Argon for long-running workOct 5, 2026
  15. Artificial intelligence buildout faces a revenue test15Artificial intelligence buildout faces a revenue testOct 5, 2026 · Reading now
  16. PTI Imran Khan march begins after Pakistan talks fail16PTI Imran Khan march begins after Pakistan talks failOct 5, 2026
  17. Strait of Hormuz stays shut until seven conditions met17Strait of Hormuz stays shut until seven conditions metOct 5, 2026

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top