AI Revenue Hits $25B as Massive Costs Keep Margins Thin
- Source
- Bloomberg
- Time
- 3:48 PM
- Weight
- 94/100
Global artificial intelligence revenue reached $25 billion in the first quarter of 2026, marking a significant milestone for the industry. According to a report from research firm Exponential View, these sales have now exceeded the $21 billion in estimated depreciation costs associated with data center and chip investments for two consecutive quarters.
This shift suggests that the massive capital expenditures by tech companies may finally be reaching a point of economic sustainability as market demand begins to catch up with infrastructure spending. Despite the growth in sales, profit margins remain narrow across the sector.