AI Economics Are Brutal. Demand Is the Variable to Watch.

It’s hard to predict how the artificial-intelligence bubble will play out, but here’s a clue. Keep an eye on usage of AI, measured in units known as ‘tokens.’ It’s soaring.

AI companies are experiencing significant financial losses due to unexpectedly high demand for data processing, despite falling unit costs.
Google’s AI token processing increased from 9.7 trillion monthly to 1.3 quadrillion, a substantial rise driven by efforts to improve AI accuracy.
Industry experts anticipate improved AI models, new data centers, and increased demand to eventually make AI economics profitable, with revenue projected to reach $780 billion by 2030.