“Before getting into the eruption of executive orders released yesterday, I want to address questions on a chart from our 2025 Outlook which received the most attention. Our goal was to highlight rising hyperscaler capital spending on AI infrastructure, and the general principle that these companies will need hundreds of billions in new incremental AI revenues to maintain their current margins due to these new outlays. The hyperscaler revenue gap: $400 billion 50% hyperscaler gross GPUs = ~50%of data center total cost of ownership $400bnrevenue shortfall: Google, Microsoft, Meta, Apple, Oracle, Bytedance, Alibaba, Tencent, NVIDIA Y25 revenue Implied data center spending Required AI revenue Projected AI What was the inspiration for this chart?”
Morten W. Langer
