AI Revenue Surpasses $100 Billion in Two Years as Wall Street Warns About SaaS Risks
The AI industry has grown rapidly, with cumulative revenue from major players like OpenAI and Anthropic now exceeding $75 billion. When including models such as Gemini, Meta's offerings, and xAI, the total surpasses $100 billion—up from zero just two years ago. Analyst Gil Luria warns that businesses relying on closed AI models risk losing control of their data if providers decide to compete with them. Infrastructure leaders like NVIDIA are capturing much of this growth, reporting Data Center revenue reaching $75 billion in Q1 FY2027 and projecting continued expansion. Microsoft and Alphabet have also increased capital expenditures significantly as they scale cloud infrastructure for AI workloads. However, investors remain skeptical about the return on these large investments. Palantir serves as a cautionary example of companies building directly atop closed models—despite strong revenue growth, its stock is down 26% year to date due to high valuations and market uncertainty.
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Topics: AI revenue Anthropic NVIDIA earnings OpenAI SaaS risks