Don't look now but none of these AI cloud providers are actually profitable. They are buying/spending much, much more than what customers are paying for. As someone put it, they are literally lighting huge piles of money on fire.

There are 2 reasons for this:

1) Fear (of missing out)

2) Greed.

This is being driven by raw, naked speculation at the venture capital level that is unprecedented.

Consultants at Bain & Co. estimate that justifying current AI spending will require $2 trillion in annual AI revenue by 2030.

By comparison, this is more than the combined revenue of Amazon, Apple, Alphabet, Microsoft, Meta and Nvidia, and more than five times the current size of the entire global subscription software market.