IBM CEO says there is 'no way' spending on AI data centers will pay off
9 days ago
- #AGI Skepticism
- #Data Center Economics
- #AI Investment
- IBM CEO Arvind Krishna doubts profitability of current data center investments, citing $8 trillion in CapEx needing $800 billion in profit just to cover interest.
- Krishna estimates a 0-1% chance of achieving AGI with current technology, emphasizing the need for further breakthroughs beyond LLMs.
- High-profile tech leaders like Marc Benioff and Andrew Ng express skepticism about AGI, calling it overhyped or a marketing move.
- OpenAI's Sam Altman suggests the US needs to add 100 gigawatts in energy capacity annually, but Krishna disagrees on the ROI of such investments.
- Krishna acknowledges AI's potential to unlock trillions in productivity but stresses AGI requires more than just scaling compute or LLMs.