AI sales hit $25B in Q1 2026, topping estimated data-center depreciation costs

truecakesnake · reddit · 2026-07-22

AI sales are starting to catch up with data-center spending

Bloomberg reports that global AI sales excluding China reached $25 billion in Q1 2026 for hyperscalers and neoclouds, which is above the industry’s estimated $21 billion in depreciation costs.

It also says generative AI revenue excluding China hit $110 billion over the last 12 months and is scaling three times faster than any previous IT wave.

The core implication is that AI infrastructure spending may be moving closer to a revenue base that can justify it, at least for the biggest cloud and neocloud players.

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