Source: Theregister
Major cloud and AI operators are now openly confronting a math problem: the billions flowing into chips, data centers, and training infrastructure won't be justified by near-term AI service revenue. This pressure is forcing a genuine question across the industry—whether current capex levels reflect actual confidence in AI's commercial potential or whether first-mover advantage and fear of falling behind are funding spending that won't generate returns. For commerce specifically, this means AI tools will likely remain unprofitable ventures bankrolled by search, advertising, and cloud revenue longer than vendors admit, delaying when and how AI actually gets embedded into transaction workflows.