From the article: "We have been following the slow growth in revenues for generative AI over the last few years, and the revenues are neither big enough to support the number of layoffs attributed to AI, nor to justify the capital expenditures on AI cloud infrastructure. Those expenditures may be approaching $1 trillion for 2025, while AI revenue—which would be used to pay for the use of AI infrastructure to run the software—will not exceed $30 billion this year."

Are the numbers really that bad?

Google has been claiming that their cost per AI search query has dropped by over an order of magnitude.[1] They're presumably reaping the gains of not cranking up a really smart model on dumb questions.

[1] https://arstechnica.com/ai/2025/08/google-says-it-dropped-th...