Gartner: $3.5T in AI infrastructure spending at risk of writedowns by 2030

Gartner warns that over $3.5 trillion in AI infrastructure spending could face asset impairments by 2030 if providers keep investing at current rates. AI applications are expected to generate about $3.6 trillion in revenue against the $8.5 trillion needed, and more than 80% of neoclouds will stop operating independently.

• AI infrastructure spending: about $1 trillion in 2026 and $6 trillion in 2027–2030
• Providers need $8.5 trillion in revenue by 2030, but only $3.6 trillion is expected
• Over 80% of neocloud providers will cease operating independently by 2030
• Musk predicted financial distress for more than 200 neoclouds