tech
January 29, 2026
IBM CEO Questions Profitability of AI Data Centre Boom
IBM CEO Arvind Krishna doubts that multi-trillion-dollar AI data centre investments aimed at AGI will ever deliver strong profits
TL;DR
- IBM CEO Arvind Krishna questions the profitability of massive AI data center investments aimed at AGI.
- He estimates the total global capital expenditure for AGI computing power at approximately $8 trillion.
- Krishna suggests that the rapid depreciation of technology and high interest costs make achieving a strong return on investment unlikely.
- He believes the chance of achieving AGI with current technology is between 0-1% without further breakthroughs.
- Google and Meta are increasing their investments in data center infrastructure for AI.
- Krishna remains optimistic about AI unlocking trillions of dollars in enterprise productivity.