AI Needs $3 T Revenue to Repay $1.5 T Spend—Risks Loom
Sequoia partner David Cahn now estimates AI infrastructure costs will reach $1.5 trillion by 2026, requiring $3 trillion in industry revenue to break even. While firms like Anthropic and OpenAI report tens of billions in ARR, a gap remains, and if hyperscalers miss cash‑flow targets, the fallout could ripple into a broader recession.