Global AI sales, excluding China, reached $25 billion in Q1 2026, surpassing an estimated $21 billion in depreciation costs. This marks the second consecutive quarter where sales have exceeded depreciation, suggesting AI companies are beginning to cover their capital expenditures. However, margins remain thin, with depreciation charges consuming over two-thirds of revenue, leaving little buffer for other operational expenses like power, labor, and financing. AI
IMPACT Suggests a potential stabilization in AI infrastructure investment costs relative to sales.
RANK_REASON Financial results for the AI industry, indicating a shift in capital expenditure coverage.
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