Deep Tide TechFlow message. On July 16, a report from research firm Exponential View showed that revenue from artificial intelligence (AI) has reached a tipping point, suggesting that technology companies’ investment of tens of billions of dollars in this field may be economically sustainable.

The report found that global AI sales revenue from hyperscale cloud providers and emerging cloud providers reached $25 billion, exceeding the industry’s estimated depreciation costs of $21 billion related to investment in data centers and chips for the second consecutive quarter. This milestone indicates that AI companies’ revenue has begun to be sufficient to cover their capital expenditure costs, but profit margins remain thin.