Study warns US AI buildout could cost over $10 trillion
A fresh study warns that the rapid rise of AI in the US is moving faster than traditional infrastructure can keep up with.
Building out this tech could cost over $10 trillion by 2032, about 3.6% of the country's GDP every year.
Researchers say these huge investments might create risky financial bubbles, a bit like what happened with railroads and telecom in the past.
AI revenue must reach $3.7 trillion
AI's financial demands are now bigger than what even companies like Amazon or Alphabet have on hand, so they're turning to complicated outside funding.
Columbia Business School's Stijn Van Nieuwerburgh points out this setup feels a lot like the subprime mortgage crisis days.
Plus, for AI to pay off, it'll need to jump from $100 billion to $3.7 trillion in yearly revenue by 2032, a massive leap that comes with serious risks if things don't go as planned.