Gartner warns $3.5T AI infrastructure investment might fail by 2030
A new Gartner report says more than $3.5 trillion spent on AI infrastructure might not pay off by 2030.
The main issue? Companies are pouring money into AI tech and hardware, but returns just aren't keeping up, especially with assets losing value so fast.
If this trend keeps up, the risk could top $4 trillion by 2032, pushing back profit goals even further.
Over 80% neocloud providers at risk
Gartner expects AI infrastructure spending to hit nearly $1 trillion in 2026 and another $6 trillion by 2030, but projected revenue is only about $3.6 trillion, way less than what's needed to break even.
This gap puts serious pressure on "neocloud" providers (the companies powering all those cloud-based AI tools), with over 80% of them possibly ceasing independent operations by 2030 if things don't change.