🔮 The state of the AI economy

Exponential View · 3 weeks ago

Researchers released a report measuring the generative AI economy at $110 billion in revenue over the past 12 months with an annualized run rate of $175 billion, using a deduplicated model that tracks end-customer spending rather than double-counting supply chain flows. The analysis found that AI revenues are growing roughly three times faster than previous technology waves like mobile and internet, and that hyperscaler revenues are approximately covering depreciation expenses on AI infrastructure capital spending. As token prices fall, demand elasticity shows a 10% price cut generates 12-18% more token usage, suggesting the market will expand further as models improve and become cheaper.