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ARTICLE · 01 OCTOBER 2025

Navigating AI's Spending Spree: Dot-Com Wisdom For Dealmakers

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The Wall Street Journal recently spotlighted the scale of today's AI investment boom and growing doubts about whether it will pay off. In 2024, global AI infrastructure spending hit $235 billion...

United StatesTechnology
Henry S. Klimowicz
Henry S. Klimowicz
Neil Torpey
Neil Torpey

The Wall Street Journal recently spotlighted the scale of today's AI investment boom and growing doubts about whether it will pay off. In 2024, global AI infrastructure spending hit $235 billion, with projects like OpenAI's "Stargate" envisioning $500 billion over four years. OpenAI—the industry's most prominent player—has about 700 million weekly users but is on track for only $13 billion in annual revenue, or roughly $17 per user. This gap between significant investment and modest monetization lies at the heart of AI's business challenge.

Revenue Illustration

Using OpenAI as a case study highlights the math problem. The company has reportedly committed to paying Oracle around $60 billion annually for servers and floated plans for data-center investments approaching $1 trillion. Against that backdrop, $13 billion in annual revenue is a drop in the bucket. Optimists point to projected growth in OpenAI's paid subscribers—currently around 20 million and expected

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