IBM's CEO just dropped a bold warning: there's no way hyperscalers like Google and Amazon can turn a profit at their current rate of AI infrastructure spending. Tech giants are pouring an estimated $380 billion into AI data centers this year alone.
Google raised its 2025 spending outlook to $93 billion, while Amazon bumped theirs to $125 billion. Both companies are signaling even bigger increases next year. The CFOs are confident, but IBM's leadership sees unsustainable economics.
This raises a critical question about the AI race. Are we witnessing smart long-term investment or an infrastructure bubble waiting to burst?
