IBM CEO Arvind Krishna Questions AGI Capital Expenditure Returns
2026-06-22 13:05

Woofun AI reports that IBM CEO Arvind Krishna has voiced significant skepticism regarding the industry's aggressive capital expenditure on Artificial General Intelligence. Krishna estimates that constructing a 1-gigawatt data center costs approximately $80 billion, implying that deploying 100 gigawatts of computing power could drive total industry spending to $8 trillion.

He argued that generating $800 billion in profit merely to cover interest makes achieving a return on investment fundamentally unfeasible from a business logic standpoint.

Furthermore, Krishna assessed the likelihood of realizing AGI through existing large language model technology as negligible, ranging between 0% and 1%, absent fundamental breakthroughs in knowledge integration. Despite this pessimism on AGI timelines, he acknowledged that generative AI continues to unlock trillions of dollars in enterprise productivity value.

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Arvind Krishna
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