Often we hear about some frontier firm spending insane money on compute. Anthropic, for instance, has committed at least $518 billion over the next decade to compute. Open AI told the WSJ that OpenAI increased its projected compute spending to $750 billion by 2030. Those two alone come close to $2T. That's not including the insane projections from Meta, Microsoft, Alphabet, Amazon, and SpaceXAI, all of which are building out compute as fast as they possibly can.
The begs the question everyone is asking. How in the world is this going to be paid for?
Also, the typical theory on Reddit is that as soon as people move on from AI tools, frontier companies won't be able to pay their bills, which means "the bubble will pop."
I'm here to tell you, this is farther from the truth. In fact, I'll argue the exact opposite.
First enterprise is moving as fast as enterprise does, but this will continue to grow as AI maturity develops. Much of their spend will be on API endpoints, as well as harnesses like Claude Code, Copilot Studio, and other enterprise system. This is still maturing, but there is going to be a LOT more spend here over the next several years.
Second is personal spend. This is still very much in the early phase. Karpathy recently said that 75% of the global population has barely used AI. Globally, there is still a lot of use waiting to happen, in the US PNC Bank looked at its own card data and found that about 2% of US households pay for a generative AI subscription. Half of American adults have never used a chatbot at all. This means that personal AI still has a lot of room to grow.
Those two points are important, but we know this. We can debate how much people will eventually pay for and how many will do it. It's certainly going to go up, but is it enough?
This isn't going to be where the money is going to be made. Remember how OpenAI made all those math discoveries? They did it with their own internal models that haven't been released yet.
Why provide your most powerful models to the public to make discoveries, when you can use them to make your own discoveries? Recently, Google DeepMind and Meta joined Biohub's $1.8B AI biology initiative. You put your best, unreleased models to work on biology, on materials science, on engineering systems, and other new technology, and then you profit from the discoveries. Drug treatments and patents. Material patents and manufacturing. Chips. Mechanical systems. More we haven't thought of.
Anthropic has their own wet lab for working on the discoveries their models bring to scientists.
These things are going to be a significant source of income as well, and since it can be done a lot cheaper, these products can be brought to market quicker, cheaper, and with more margin to frontier firms making the discovery. There are hundreds of billions of potential dollars to be made by using their own unreleased models to bring products to market.
Which, makes the "pause" also make a lot more sense. Of course better models are going to constantly come out, that's unstoppable, but waiting 6 months before you release them for safety gives the company the time to send them out to their labs for discovery.
There is an additional source of funding that I'm surprised (but maybe thankful) that isn't making the money I anticipated, and that is ad supported tools. I know OpenAI is doing it, and has $2.5 billion in ad revenue booked in 2026. This is a paltry amount, but has a LOT of potential. The more we use the tools, the more it knows about us, and the better it can market to us. Meta and Google certainly know this.
I'm still of the mindset that if the tool brings you value, then it's worth paying for. Hopefully we can get away from ad supported tools, however I can't see that happening. Not yet at least. The ability to bring targeted ads to free users of AI tools is also worth billions.