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.

6 metrics· Cited 0× in the knowledge base ·Open source ↗

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