Updated
Updated · Bloomberg · Jun 26
Global AI Sales Top $25 Billion in Q1, Beating $21 Billion Depreciation Costs
Updated
Updated · Bloomberg · Jun 26

Global AI Sales Top $25 Billion in Q1, Beating $21 Billion Depreciation Costs

3 articles · Updated · Bloomberg · Jun 26

Summary

  • $25 billion in global AI sales excluding China in Q1 2026 exceeded the industry’s estimated $21 billion in data-center and chip depreciation costs, marking a second straight quarter above that threshold.
  • Exponential View said the crossover suggests the tech sector’s vast AI buildout may be economically sustainable, because revenue is starting to cover the capital costs tied to the spending boom.
  • Margins remain thin: depreciation still absorbs more than two-thirds of AI revenue, leaving only a narrow cushion for power, labor and financing expenses.
  • The result points to a tipping point for an industry that has poured hundreds of billions of dollars into AI infrastructure and is still testing whether that investment can generate durable returns.

Insights

AI revenue covers initial costs, but are soaring energy bills creating the industry’s next financial crisis?
The AI boom requires a massive physical buildout. Can our strained power grids and supply chains actually support this exponential growth?
AI boosts individual productivity, so why do only 27% of executives report seeing the expected return on their investment?