@rohanpaul_ai: This is a brilliant report. The State of the AI Economy by @exponentialview - $110B real AI revenue over 12 months, aft…

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Summary

A report by Exponential View reveals that the generative AI economy generated $110 billion in real revenue over the past 12 months, with an annualized run rate exceeding $175 billion. It highlights growth faster than mobile or internet adoption, price-elastic demand where token price cuts drive increased usage, and early-stage enterprise AI deployment.

This is a brilliant report. The State of the AI Economy by @exponentialview - $110B real AI revenue over 12 months, after removing double-counting. so $1 spent on Claude is counted once, even if part of it later flows to Amazon or another infrastructure provider. - $175B current annualized run rate, showing fast acceleration. Measured by end-customer spend, not supply-chain pass-through revenue. Excludes China, internal AI savings, ad uplift, consulting, and systems integration. - Growth running roughly 3x faster than mobile or internet adoption waves. - The pace of revenue formation has sharply accelerated. New $1B revenue now arrives in under 2 days, versus 180 days in 2023. - Enterprise AI has moved beyond pilots, but deep company-wide rollout is still early. - AI earnings-call mentions reached 31% of tracked S&P 500 firms. - Only 20% of tracked firms made quantified AI impact claims. - Hyperscaler AI revenue roughly covers AI infrastructure depreciation for now. GPU economics depend heavily on 6-year compute life assumptions. Other AI infrastructure gets modeled over 14 years. - Token price cuts do not automatically reduce revenue. - Every 10% token price cut drives 12-18% more token usage. - AI demand looks price elastic, meaning cheaper AI expands usage faster than prices fall. - Power availability and data-center costs remain major limits on future scaling.
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This is a brilliant report. The State of the AI Economy by @exponentialview

  • $110B real AI revenue over 12 months, after removing double-counting. so $1 spent on Claude is counted once, even if part of it later flows to Amazon or another infrastructure provider.

  • $175B current annualized run rate, showing fast acceleration. Measured by end-customer spend, not supply-chain pass-through revenue. Excludes China, internal AI savings, ad uplift, consulting, and systems integration.

  • Growth running roughly 3x faster than mobile or internet adoption waves.

  • The pace of revenue formation has sharply accelerated. New $1B revenue now arrives in under 2 days, versus 180 days in 2023.

  • Enterprise AI has moved beyond pilots, but deep company-wide rollout is still early.

  • AI earnings-call mentions reached 31% of tracked S&P 500 firms.

  • Only 20% of tracked firms made quantified AI impact claims.

  • Hyperscaler AI revenue roughly covers AI infrastructure depreciation for now. GPU economics depend heavily on 6-year compute life assumptions. Other AI infrastructure gets modeled over 14 years.

  • Token price cuts do not automatically reduce revenue.

  • Every 10% token price cut drives 12-18% more token usage.

  • AI demand looks price elastic, meaning cheaper AI expands usage faster than prices fall.

  • Power availability and data-center costs remain major limits on future scaling.

Azeem Azhar (@azeem): The GenAI economy has generated $110 billion in sales over the past 12 months. It is growing fast. On an annualized basis, the revenue run rate exceeds $175 billion.

These numbers took us several months to construct, and as far as we know, it’s the first bottom-up, deduplicated

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A research report reveals that the generative AI economy has generated $110 billion in sales over the past 12 months, with a revenue run rate exceeding $175 billion, based on a bottom-up, deduplicated analysis of consumer and enterprise AI spending.

@FinanceYF5: Over the past 12 months, the GenAI economy has generated $110 billion in sales. It is growing rapidly. On an annualized basis, its revenue scale has exceeded $175 billion. These numbers were built by Azeem's team over several months. This is the first bottom-up, deduplicated measure of full-stack consumer and enterprise AI spending…

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Over the past 12 months, the generative AI economy has generated $110 billion in sales, with annualized revenue exceeding $175 billion. This is the first bottom-up, deduplicated metric built by Azeem's team to measure full-stack consumer and enterprise AI spending.

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