AGI Can Wait. The Real Money in AI Is in B2B and Government.
Major AI players like OpenAI, Anthropic, Google, and xAI are confronting a harsh reality: the pursuit of Artificial General Intelligence (AGI) is consuming immense budgets, but AGI itself remains a concept, not a reality. The Financial Disconnect The spending on AI infrastructure is staggering. In 2024 alone, hyperscalers invested nearly $197 billion: Microsoft: $80B+ Alphabet: $75B Meta: $72B Yet, the financial results from AI labs don’t match the investment. OpenAI is reporting $9 billion in expenses, leading to a $5 billion loss in 2024. Elon Musk’s xAI is burning $1 billion per month on servers and chips. Anthropic and DeepMind show a similar dynamic. ...