Jason M. Lemkin discusses AI's trillion-dollar potential, pointing to OpenAI hitting $2 billion in annual revenue in three years and Nvidia as proof of the boom. He argues companies are reallocating existing budgets to AI rather than spending new money.
July 5, 2024
Over $2 billion in ARR (in three years).
You've got to believe that there is room for what, $100 billion companies coming out of this, you know, the bull, I guess. Listen, we're still, we're all learning, right? If OpenAI, literally, essentially, in three years, went to over 2 billion in ARR, and you have the bull case and you keep tracing that out, maybe there is room for $100 billion outcomes. Right. It's crazy, but AI is the amount of spend is huge. Can we, if we maintain this spend. Just look at Nvidia. Right, Right. Just look at. And so if we maintain the spend.
We say the spend is huge and it's getting bigger and bigger. Is the spend being created net new, or is it being taken from elsewhere?
It is all being taken.
