Azeem Azhar: AI revenue hits $345bn run-rate — a flight to quality, not collapse
Exponential View (Azeem Azhar) · rss · 2026-11-10
Azeem Azhar (Exponential View) unpacks two chaotic weeks: an AI correction beginning, the Nasdaq 100's worst day since March 2020 after the midterms, plus the Jensen Huang controversy. His core call: this is a flight to quality, not a collapse.
Key points and data:
- Spending keeps rising: AI revenue hit $188bn in the twelve months to October, running at a $345bn annualized rate — 4.2x a year ago, roughly 43% growth per quarter.
- Anthropic's slowdown isn't a stall: quarterly growth fell from 147% to 45%, but 45% is exactly the pace of the whole AI economy; year over year it's up 1,000%. The outlier was 147%, not 45%.
- Non-tech enterprises are figuring AI out and intend to spend more next year than this year.
- Outlook: pricier data centers favor hyperscalers; Nvidia gets its wings clipped, dragging the open-weight camp; neoclouds are the weak link; an Anthropic IPO at a sensible price would steady the sector.
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