News Summary

• AI companies will need to increase their own productivity by a factor of 2.7 to break even by 2030.
• If a productivity boom “fails to materialize,” the current buildout will be the largest misallocation of capital in history.
• No one really knows how profitable and useful these multibillion-dollar behemoths will be down the road.
• If future demand for the data centers’ computation power drops, the companies will still be on the hook to pay back the money borrowed.