AI Revenue Reaches $25 Billion in First Quarter
In brief
- AI revenue, excluding China, reached $25 billion in the first quarter of 2026.
- This is a significant increase and shows that tech companies may be able to cover the cost of their investments in data centers and chips.
- The $25 billion in revenue exceeds the industry's estimated $21 billion in depreciation costs for the second consecutive quarter.
- This is important because it shows that the hundreds of billions of dollars being spent on AI may be economically sustainable.
- The biggest US tech companies plan to spend as much as $725 billion this year on capital expenditures, much of it on AI infrastructure.
- Generative AI revenue, excluding China, reached $110 billion over the past 12 months and is scaling three times faster than any previous information technology wave.
- The AI industry will continue to grow and change in the coming years.
Read full story at Yahoo Finance →
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