Posted Sep 26, 2025 at 6:53 PM UTCEExternal LinkElizabeth LopattoThe WSJ notices that the AI industry has an “underpants gnomes” theory of profit.Current AI spending means the industry needs $2 trillion in annual revenue by 2030, according to estimates from Bain & Co. That’s “more than five times the size of the entire global subscription software market,” write Eliot Brown and Robbie Whelan. But there’s a plan: 1. Build data centers. 2. ???? 3. Profit. Anyway, I’ve been wondering about this for a while now.Spending on AI Is at Epic Levels. Will It Ever Pay Off?[wsj.com]Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Elizabeth LopattoLoading commentsGetting the conversation ready...Most PopularMost PopularXbox is now XBOXMicrosoft starts canceling Claude Code licensesDoes Trump Mobile know how many stripes are on the American flag?Here are 40 of our favorite deals from REI’s massive Anniversary SaleThese are the laptops I recommend for pretty much anyoneThe Verge DailyA free daily digest of the news that matters most.Email (required)By submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policyand Terms of Serviceapply.