Generative AI Economy Hit $110 Billion Sales, Reaching $175 Billion Annual Run Rate
Updated
Updated · Exponential View · Jun 25
Generative AI Economy Hit $110 Billion Sales, Reaching $175 Billion Annual Run Rate
3 articles · Updated · Exponential View · Jun 25
Summary
$110 billion in de-duplicated generative AI revenue was generated over the past 12 months, according to Exponential View’s first bottom-up report, which annualized the latest month at more than $175 billion.
The model tracks end-customer spending across consumer and enterprise AI while stripping out double-counting through the stack, using company disclosures, leaks and supplier-customer triangulation to estimate private and cloud-provider revenue.
AI revenue is growing about three times faster than earlier mobile or internet waves, and the report says companies are moving from pilots toward broader deployment with executives signaling heavier investment ahead.
Hyperscaler AI revenue roughly covers depreciation on AI-specific infrastructure in the model, while 10% token price cuts are estimated to lift usage 12% to 18%, suggesting lower prices can still expand total spending.
The report excludes China, internal AI-driven ad uplift, internal efficiency gains and professional services, leaving a partial but auditable snapshot of demand across the AI economy.
With AI costs soaring and ROI proving elusive, what is the true price of enterprise-wide adoption?
Is the AI economy's trillion-dollar spending a sustainable revolution or the biggest speculative bubble in tech history?
AI's growth demands doubling our power supply by 2030. Can the grid handle this boom without an energy crisis?
Generative AI Market to Surpass $1.2 Trillion by 2035: Growth Drivers, Sector Trends, and Global Competition
Overview
The generative AI economy is expanding rapidly, with its market size estimated at USD 37.89 billion in 2025 and projected to reach USD 55.51 billion in 2026. By 2035, forecasts suggest the market could soar to USD 1,206.24 billion, reflecting a strong compound annual growth rate of 36.97% from 2026 to 2035. This impressive growth highlights the increasing integration and profound impact of generative AI technologies across various industries. These market size and revenue estimates are based on comprehensive research methodologies that start with a base year, such as 2025, and project future trends.