AI's $600Bn hole..but look who is making money in the AI boom

The wonky ones. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [AI's $600Bn hole..but look who is making money in the AI boom]( The wonky ones. Jun 27   [READ IN APP](   Gen AI is resulting in $600Bn capex hole globally. Here is a simple calculation by David Cahn of Sequoia Capital. [Upgrade to paid]( All you have to do is to take Nvidia’s run-rate revenue forecast and multiply it by 2x to reflect the total cost of AI data centers (GPUs are half of the total cost of ownership—the other half includes energy, buildings, backup generators, etc)1. Then you multiply by 2x again, to reflect a 50% gross margin for the end-user of the GPU, (e.g., the startup or business buying AI compute from Azure or AWS or GCP, who needs to make money as well) - [source]( --------------------------------------------------------------- OpenAI is the only winner ..so far When it comes to consumer apps, OpenAI is the only winner so far. OpenAI’s revenue is rumored to be ~$3.4B, up from $1.6B in late 2023 - and while there are many startups doing <= $100mn ARR, nobody is even close to OpenAI. The big question is outside of ChatGPT, how many apps have gone mainstream? Used by millions? (FYI: Perplexity did $20mn ARR last year). That begs us an important qn: So who is making money in Gen AI world? The wonky ones. [Video gif. A cat shaking its head.]( You don’t want expect them to win..but they are... Keep reading with a 7-day free trial Subscribe to Ashish Sinha: On startups, AI and Platforms to keep reading this post and get 7 days of free access to the full post archives. [Start trial]( A subscription gets you: Subscriber-only posts and full archive Post comments and join the community   [Like]( [Comment]( [Restack](   © 2024 Zakti Techmedia Private Limited 677, 27th main, HSR Layout, Bangalore-560102 [Unsubscribe]() [Get the app]( writing]()