One signal

Tom Tunguz’s analysis compares AI application revenue with infrastructure spending and argues that today’s AI build-out is paying for itself faster than the internet-era telecom build-out did.

He also says venture-backed firms account for most large AI spenders, making the industry’s circular financial ties a substantial part of the US economy. It is a useful counterpoint to the familiar worry that all this computing capacity is simply a very expensive monument to optimism.

Discuss: Is faster payback than the telecom build-out enough to reassure you about AI’s circular funding, or does that make the industry’s financial ties more concerning?

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