IBM’s CEO says trillions spent on AI data centers can’t pay off at today’s costs. The Bank of England warns AI is creating new financial risks in lending.
Arvind Krishna, CEO of IBM, has argued that the recent surge in spending by Big Tech on AI-data centers is economically unrealistic. On the “Decoder” podcast he estimated that building and fully outfitting a one-gigawatt AI data center costs about $80 billion. Given that industry announcements suggest firms are planning up to 100 gigawatts of …