Gartner Warns $3.5 Trillion in AI Infrastructure Spending at Risk of Write-Downs

Gartner has issued a warning that over $3.5 trillion in AI infrastructure spending could face impairment by the end of 2030 if current spending rates continue. The research firm calculates that AI providers need $8.5 trillion in revenue through 2030 to achieve a 12% return, but forecasts no more than $3.6 trillion. Gartner also predicts that more than 80% of 'neoclouds'—companies renting computing power for AI—will cease independent operations by 2030 due to cost pressures and unsustainable business models.