AI Sales Start to Justify Data-Center Spending Boom, Report Says

• Quarterly AI revenue (excluding China) reached $25 billion in Q1 2026, surpassing $21 billion in capital expenditure depreciation.
• Current annualized AI revenue stands at $170 billion, demonstrating a 200% year-over-year growth rate.
• AI is scaling approximately three times faster than previous transformative IT waves, such as the internet and mobile computing.

A new report from Exponential View indicates that AI revenue has reached a tipping point, now exceeding capital expenditure depreciation. This suggests the massive investments in AI infrastructure are becoming economically sustainable, with current annualized revenue at $170 billion and a remarkable 200% year-over-year growth rate, outpacing prior tech waves.