The Economics of AI | What Does it Mean?

This isn’t a pro-AI or anti-AI video. It’s a numbers video.

Big Tech is projected to spend roughly $650 billion on AI this year alone. OpenAI expects to lose money every year through 2028. Enterprise AI adoption is producing little measurable return for most companies. Yet spending continues to accelerate.

In this video, I break down the actual capital expenditures, projected losses, shrinking margins, enterprise failure rates, and the growing calls for federal support. The key distinction most people miss is this: capability is not the same thing as commercial viability.

AI can be impressive — and still not make economic sense at scale.

The bigger concern? When government frames AI as a national security race against China, reckless spending can easily become “too big to fail.”