GenAI Must Generate $600B A Year To Justify Hardware Costs, Sequoia Estimates: How Much Does Google Search Make?

Quick Summary:

Sequoia’s Report: A report from Sequoia Capital written by David Cahn estimated that AI needs to generate $600 billion a year to justify its immense hardware costs.

Cahn arrived at the $600 billion number by taking NVIDIA Corp‘s (NASDAQ:NVDA) fourth-quarter GPU revenue of $150 billion and doubling it to account for the cost of AI data centers.

And a new report from Sequoia Capital cast doubt on whether firms will ever be able to recoup hardware costs.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Author / Journalist: Hayden Buckfire

Category: Technology

Markets: United States

Topics: Benzinga AI Expert Ideas Tech Stories That Matter US67066G1040 Equities Artificial intelligence Sequoia Capital NVDA

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-07-09 @ 20:27:29 (1 weeks ago)

News Timezone: GMT +8:00

News Source URL: benzinga.com

Language: English

Article Length: 436 words

Reading Time: 3 minutes read

Sentences: 23 lines

Sentence Length: 19 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Benzinga

News ID: 21558615

View Article Analysis

About Benzinga

Main Topics: Technology

Official Website: benzinga.com

Update Frequency: 15 posts per day

Year Established: 2010

Headquarters: United States

News Last Updated: 8 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT +8:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #53

Publisher Details

Frequently Asked Questions