Gartner warns $3.5tn of AI infrastructure spending is at write-down risk

Gartner warns that over $3.5 trillion in AI infrastructure spending could become impaired by 2030 if current investment trends continue, due to insufficient AI revenue to cover costs. The firm predicts most neocloud providers will cease independent operations by 2030 amid cost pressures and lack of differentiation. Hyperscalers like Microsoft and Amazon are less exposed, while specialist neoclouds such as CoreWeave face greater financial risks.