Video / Short
The Number That Reveals AI's Biggest Problem
Pete Cooper walks through a $650 billion figure he attributes to J.P. Morgan and compares it with what the biggest AI companies bring in. He explains why he sees the gap as a real risk for the industry.
Video summary
Pete Cooper puts forward what he calls the number the industry does not want you to know about. He says J.P. Morgan did the analysis and arrived at $650 billion as the figure needed to make the AI industry sustainable.
He sets that against revenue from the biggest players as he reports it. OpenAI is bringing in $25 billion while losing $14 billion, Anthropic is on track for somewhere between 26 and 47 billion, and Gemini is at roughly $25 billion. In round numbers he calls it $75 billion coming in.
By his arithmetic that is $1 coming in for every $9 to $10 going out, an order of magnitude short. If the money does not arrive from investors or customers, he warns, the companies could effectively run out of cash. All figures are his, as stated in the video.
Video transcript
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This is the number that the industry doesn't want you to know about. By the end of this, you'll know more about the industry knowing about this number and why it matters than most people that write about it. So, what is that number? Well, J. P. Morgan consulting house did the analysis and they stated a number of $650 billion. That number is required to make the AI industry sustainable. So, how is the industry going? Well, let's take the big ones. OpenAI bringing in $25 billion. They're losing $14 billion. Anthropic, well, they're on track for between 26 and 47 billion. And Gemini, roughly $25 billion. So, in round numbers, let's call it $75 billion.
$75 billion coming in, requirement for sustainability of $650 billion. That's a huge gap. $1 coming in, $9 to $10 going out. So, an order of magnitude more revenue required to make the industry sustainable. And this is a real problem. If they don't get the money coming in from investment capital or coming in from customers, we're going to have some big problems. They're going to effectively run out of cash. So, if you want to know more about the industry, what's hype and what's not, I'll do my best to do that every week. Just follow us as we move forward. I hope that helps and thanks for watching.