Stephen Carroll

I'm Stephen Carroll and this is Here's Why, where we take one news story and explain it in just a few minutes with our experts here at Bloomberg.

Everyone has an opinion on where the AI frenzy is going next.

But while optimism is rampant about the technology's potential, more questions are now being asked about AI's running costs.

Even with bumper results and bullish revenue forecasts, here's why AI costs still worry investors.

Tom McKenzie, who hosts Bloomberg Tech Europe on Bloomberg Television, joins me now for more.

Tom, the investor Michael Burry of Big Short fame is among those who's worried about these future costs of AI and data centres in particular.

What's the concern?

So how are the big AI players thinking about these costs at the moment?

One of the things that occurs to me in this as well, as we're talking about some of the world's most valuable companies, they have massive cash piles in a lot of cases.

Why is there concern at all about how they're going to pay for this, given their revenue streams and how much money they have?

And an expensive one at that.

Tom McKenzie, thank you very much for joining us.

Host of Bloomberg Tech Europe on Bloomberg Television.

For more explanations like this from our team of 3,000 journalists and analysts around the world, go to Bloomberg.com slash explainers.

I'm Stephen Carroll.

This is Here's Why.

I'll be back next week with more.

Thanks for listening.