TLDR Tech / AI
The state of the AI economy
The generative AI economy has generated $110 billion in sales over the past 12 months, and it's growing fast. The revenue run rate exceeds $175 billion on an annualized basis. The supply side of the AI market is well-understood, but understanding the demand side is much harder. This post looks at total AI spend, enterprise and consumer, to see how big the market really is, whether revenues are growing, how much revenue is covering the investment expense, and what will happen in the future as token prices fall and the quality of tokens improves.
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