tomtunguz.com · 2025-03-02
· 459d
Lopsided AI Revenues
Analysis of Q4 revenue data across AI market segments reveals that NVIDIA's GPU business ($31B) dominates, generating approximately 4x more revenue than all software, infrastructure, and consulting sectors combined. Microsoft ($3.25B), IBM ($2B), and various AI software/consulting companies trail significantly, indicating hardware investment still vastly outpaces software revenue despite years of exceptional growth ahead for the software sector.
Metrics in this report
GPU to Software Revenue Ratio
4times
AI market segment comparison Q4 2024
Hyperscaler Datacenter Investment
250billions USD
minimum
2025 projected annual investment
IBM AI Revenue
2billions USD
Q4 2024 publicly traded consulting and software
Microsoft AI Business Revenue
3.25billions USD
Q4 2024 Azure and AI services
NVIDIA Data Center Gross Margin
70percent
exceeds
Q4 2024 GPU business
NVIDIA Data Center Revenue
31billions USD
Q4 2024 publicly traded AI hardware