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"By 2031, annual spending on AI infrastructure could reach $1.5 trillion, including new data center infrastructure and compute capacity as well as ongoing upgrades to the installed base of GPUs, memory, and networking equipment.

If we assume that capital expenditures amount to about 25% of industry revenue (an ambitious but reasonable percentage based on trends among cloud providers), sustaining this level of investment would require an AI market approaching $6 trillion annually."

For context, total global spending on IT is expected to be about $6.4 trillion this year. Projecting really spectacular growth in current AI applications gets you about a third of the 6 trillion needed for profitability.

Bain Capital